ETC: Liquidation above $20M after consolidation should traders stop selling
After the successful Ethereum [ETH] consolidation, Ethereum Classic [ETC] traders continue to profit from the market. However, it seems the outcome has turned dire after more than $880 million was liquidated in less than five hours.
This may not be what ETC traders expect, but it is no surprise that it happened.
This crash could be a second blow to ETC traders, as the price did not increase significantly after the ETH Proof of Stake (PoS) conversion. At press time, ETC is down 0.50% in the past hour, according to data from CoinMarketCap .
Much more pain?
However, the liquidation did not begin after the Merger. According to Coinglass, ETC liquidations have exceeded $8 million in the past 12 hours. From the day before (September 14), it was $20 million.
Despite the events, ETC traders seem uninterested in calming the storm. Coinglass reports that open-ended ETC futures have maintained bullish momentum.
At the time of writing this report, this is a cumulative increase of 11.54% over the past 24 hours. While there were declines in exchanges like Okex and dYdX, Binance led the pack with a 26.94% gain.
Highs, lows and judgment
Remember that the ETH consolidation led to an increase in the hash rate of ETC. At the same time, the follow-up to the merger was met with some trouble from competitor EthereumPow [ETHW].
The concern now will be whether other parts of the ETC ecosystem will be affected by any of the aforementioned events.
On-chain data analytics platform Santiment revealed that ETC had a drop on social media. Based on the data available at the time of publication, both the social dominance and the social volume of ETC have decreased significantly. While the social media volume is 130, the social dominance of ETC is 1,164%.
Given these figures, it could be a signal for ETC futures and options traders to stop actively taking positions. However, there are some positives to keep in mind.
Trading volume on the ETC network has taken a huge hit, up 105.17% over the past 24 hours and amounting to $2.75 billion. On the other hand, the previous spike in developer activity fell from 3.91 to 3.14.
Since ETC trading has no specific direction, choosing to buy or sell in the meantime can be risky.
Sep 16, 2022