Ethereum Classic: Will sellers get another shorting opportunity?

Posted: September 9, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• ETC has faced consistent price rejections near $15.60. 
• Long positions were discouraged based on liquidation data.

Ethereum Classic [ETC] has been stuck in a narrow price consolidation of $15.20 – $12.60 in September. Traders could target range extremes for profit if the range extends. 

Is your portfolio green? Check out the ETC Profit Calculator 

In the meantime, Bitcoin [BTC] faced price rejection at $26.4k at press time and retreated to the range-low of $25.7k.

If BTC defends the range-low and reverses recent losses, ETC could edge higher to its sticky $15.60 roadblock. Another price rejection at the $15.60 roadblock could present a shorting opportunity. 

Can sellers exploit the $15.60 roadblock again?

Source: ETC/USDT on TradingView

On the 4-hour chart, ETC oscillated between $15.60 and $15.20 in the first week of September. The sticky resistance and range high of $15.60 had a confluence with an invalidated bullish order block (OB) of $15.58 – $16.00 (red) formed on the 12-hour chart on 29 August. 

The H4 50-EMA (Exponential Moving Average) of $15.5 existed below the invalidated bullish OB. Ergo, the area above $15.5 could be a solid bearish zone. So, a likely rebound at the range-low of $15.20 could face another price rejection at the range-high. 

If so, such a move could present a shorting opportunity, with an entry position at $15.55 and a take-profit at $15.20. But a 4-hour chart candlestick session close above $15.70 and subsequent move above $16.0 will invalidate the above short idea. 

Meanwhile, the CMF retreated southwards and breached the zero level, underscoring a decline in capital inflows. Besides, the RSI registered a downtick at press time, reinforcing elevated sell pressure. 

Sellers could wait for a reversal and rejection at range-high before making moves. 

Bearish bias persists

Source: Coinglass

How much are 1,10,100 ETCs worth today? 

On the liquidation front, ETC recorded more long liquidations on the 4-hour timeframe as of press time. Over $160k longs were rekt against $0 shorts, reinforcing a strong bearish pressure at press time. 

Overall, the crypto market recorded $25 million in total liquidations 4-hours before press time. Rekt longs accounted for $23 million, more than 75% of total liquidations, reinforcing a short-term bearish bias.