Ethereum Classic (ETC): Can Bulls Protect $25 Amidst Strong Downtrend?September 30, 2022
- Ethereum Classic exhibits sell-the-rebound mode.
- ETC lost 30% in the previous two weeks, and more pain might follow.
The USDT Dominance metric measures the market capitalization held in Tether. This index has surged to 7.67% from 5.73% since mid-August. That showed market players converting cryptocurrency to Tether. The overall market felt the selling pressure within the last few weeks.
Meanwhile, Ethereum Classic has witnessed bearishness since falling beneath $33.8 over the past two weeks. That came as Bitcoin failed to overcome the resistance at $19.6K.
ETC at Bad Risk-Reward Position for Long-Term Traders
Northbound actions will meet a bearish order block around the $30 value area. While publishing this post, the alternative token changed hands near $27.96. Ethereum Classic needs another 8% uptick to cancel the bearish tale. Thus, enthusiasts might wait for a bounce to execute short positions at $28 – $29, the value area near the crucial support of $30.47.
The daily and the 12hr charts exhibited a pessimistic market structure. The alt has printed several lower lows and lower highs within the previous two weeks. In that context, ETC traders might trade with the bias and watch for ‘sell’ opportunities.
The RSI (Relative Strength Index) stayed below the neutral-50 and recently tested the level as resistance. That confirmed a downside trend for the alt. Furthermore, the OBV (on-balance volume) supported selling superiority.
This index has printed lower peaks for about three weeks, indicating heightened selling volume. ETC short sellers might book profit around the support zones at $26.5 and then $24.8. Moreover, they can capitalize on a move past $30.5 to execute stop-loss orders.
Social Dominance Weakens Amid Continued Downtrend
The price recorded impressive gains during mid-July sessions. That came when the social dominance index stayed higher than the September spot. Meanwhile, the metric began to drop in August when ETC price resorted to declines.
Meanwhile, the development activity of August maintained impressive strength, encouraging network users. That indicated that GitHub repositories witnessed substantial activity, regardless of the price downturn.
Bitcoin hovered below the resistance of $19.6K. The leading digital coin should climb past $20.5K and flip the area to support. That would ensure a bullish bias. Meanwhile, BTC downtrends would see alts bleeding. Also, ETC’s long-term downsides favor shorts from a technical view.