ETC’s bullish rally cut short — will sellers stop at nothing?

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

• Selling pressure saw bears quickly reclaim the $16 resistance level.
• Buyers suffered massive liquidations due to sharp price drops.

Ethereum Classic [ETC] began October with a bang, extending its late September rally to claim the $16 price level. However, jubilant bulls had their victory party cut short, as sellers hit back with a 9% price drop to recover the $16 price level.

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

A preceding price analysis of ETC on 2 October highlighted the possibility of more benefits for buyers if Bitcoin [BTC] didn’t post immediate losses. Although BTC maintained the $27k price zone, ETC bulls were caught out by the sharp re-entry of bears into the market.

Sellers halt bullish gains

Source: ETC/USDT on Trading View

Looking at the price chart indicators on the 12-hour timeframe showed a bearish bias. The Relative Strength Index (RSI) dropped sharply out of the overbought zone and dipped under neutral 50. This denoted a spike in selling pressure.

Likewise, the Chaikin Money Flow (CMF) flipped negative to highlight significant capital outflows over the period under consideration.

Riding the short-term bearish wave, the next target for sellers would be a 7% move to the $14.45 support level. If sellers lose momentum, bulls can keep prices in a range before making another attempt to flip the $16 price level.

Sharp price drop led to significant losses for bulls

Source: Coinglass

The pushback from sellers resulted in significant losses for longs in the futures market. According to liquidation data over the past 12 hours, longs accounted for 98% of the total liquidations. This amounted to $109.25k worth of closed long positions.

Read Ethereum Classic’s [ETC] Price Prediction 2023-24

Bearish speculators quickly reacted by increasing their short positions with sellers dominating the long/short ratio by a 51.24% (shorts) to 48.76% (longs) margin.

Source: Coinglass