Ethereum Classic: ETC is in a strong downtrend can that penetrate to the bottom $25?
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Disclaimer: The information presented does not constitute financial, investment, business or other advice and is the opinion of the writer only.
- Ethereum Classic is in the sale mode of the return amount
- 30% loss in just over two weeks, more pain may follow
USDT Dominance is an index that measures the market capitalization held in Tether. Since mid-August, this metric has increased from 5.73% to 7.67%, to show market participants the crypto-to-Tether conversion. Selling pressure has appeared across the market in recent weeks.
Ethereum Classic (ETC) has been in a bearish mood since it dropped below the $33.8 mark two weeks ago and Bitcoin [BTC] also failed to break the resistance at $19,600.
Ethereum Classic is in a bad risk-reward for higher timeframe traders
To the north, a bearish block lies near the $30 mark. At the time of writing, the price is trading at $27.96. An additional 8% will be required to invalidate the discount concept. Therefore, traders can expect a larger bounce to enter short positions around the $28-$29 zone, also close to the critical support of $30.47.
Daily and 12-hour timeframes (not shown here) have a bearish market structure. They have formed a series of higher highs and lower lows over the past two weeks. Therefore, Ethereum Classic traders can trade with the trend and look for short-term opportunities.
The Relative Strength Index (RSI) is below the neutral 50 mark and has tested it as resistance recently. This indicates the presence of a downtrend. OBV also agrees that sellers have the upper hand. OBV has been making lower highs for about three weeks, indicating high selling volume.
ETC short sellers can take profits at the $26.5 and $24.8 support levels. A move above $30.5 can be used to trigger a stop loss.
Social dominance decreases as downtrend continues
Prices surged in mid-July, when the social domain index was slightly higher than it was in September. Since August, the social domain index has begun to decline, as has the price of ETC.
Encouragingly for web users, the development seen at the end of August continues to go pretty well. This shows that despite the price drop, GitHub repositories still have significant activity.
Bitcoin fluctuates just below the $19.6k resistance. To trend up, BTC will need to rise above the $20.5k region and move it to support. Meanwhile, Bitcoin’s downtrend could also cause altcoins to dry up. The long-term downtrend of Ethereum Classic also favors short positions from a technical point of view.
Sep 30, 2022
