Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- ETC price corrections could fall below $18.28, and settle at $17.60
- If the bearish block is breached at $19.18, it would invalidate the bias.
- ETC experienced a slight decrease in futures demand.
Ethereum Classic [ETC)] rallied on 4 January, following Bitcoin’s [BTC] On the same day, ETC rose. ETC rose from $15.88 up to $19.86. But a bearish order block of $19.86 stopped further rallying and forced a price correction.
The correction followed BTC’s pullback from the $16.95K high reached on 4 January. ETC traded at $18.51 at press time after testing previous support at $18.28.
ETC was very bullish on its 12-hour chart. However, it had reached an overbought zone. This could lead to further price reversal or a downtrend. This move could give traders more opportunities to sell at these levels.
Read Ethereum Classic’s [ETC] Price Prediction 2023-24
Support at $18.28 – Can the bears break it below?
All three technical indicators (RSI/MFI/OBV) point towards a continuing downtrend. Relative Strength Index(RSI) retreated from overbought territory. This is a sign that there is less buying pressure.
The Money Flow Index (MFI), meanwhile, had also reached the overbought zone and was slowly moving down. This means that accumulation was at its peak, and distribution was already underway. The on-balance volume (OBV), which has fallen sharply, suggests that there may be some buying pressure.
These changes would allow bears to push ETC prices downwards. ETC could drop below $18.28 and reach $17.60. ETC can reach $17.60 if short traders sell high and then buy back.
ETC could break the $19.18 bearish block if BTC is bullish. This would negate the bearish bias mentioned above.
ETC witnessed a decrease in trading volume and open interest
ETC witnessed a divergence in open interest (OI), price, and then a price upswing on January 4.
At press time, however, open interest (OI), which is the measure of open trading positions in derivatives markets, fell with ETC prices falling. If this bearish outlook continues, it could cause downward pressure on ETC’s price.
Santiment indicated that sellers could be given more leverage if there is a slight drop in trading volumes or a rise in negative sentiment.
Are your holdings flashing green or red? Take a look at the ETC Profit Calculator
However, a bullish BTC will help ETC overcome the bearish block. It is worth following.