Disclaimer: The following analysis is solely the author’s opinion and should not be regarded as investment advice.
- The Ethereum Classic is bearish because of the longer timeframe structure
- A temporary respite was observed at $18.3, however, this rebound was short-lived
USDT Dominance (Tether Dominance), rose to 8.53%, its highest value since mid-June. After the announcement, investor confidence was very low in the market. FTX collapse.
Read Ethereum Classic’s [ETC] price prediction For 2022-2023
Bitcoin The price charts were weak and the prices fell below $17k again. Ethereum Classic The market was under intense bearish pressure. It seemed like selling pressure would continue to dominate, but volatility could also be expected in these coming days.
Strong bounce to $18.35 to retest $23.2 mark as resistance
The Relative Strength Index (RSI) on ETC’s daily chart was back beneath the natural 50 mark. This confirmed that momentum was again in favor for the bears. The On-Balance Volatility (OBV), however, has been in decline for the past few days. The OBV had not yet broken the October support level.
After it fell below the swing low of $22.25 on 2 Nov, the market structure was bearish. The price bounced from $18.35 – $22.96 after it broke below this level. The structure was however firmly bearish.
ETC will continue to be bearish until it moves above $22.96, but that is unlikely. Ethereum Classic must move above $27.23 to break the structure and confirm an uptrend.
This was a rare event that would occur in the next weeks. Bitcoin and the market were under intense selling pressure and widespread fear. Instead, Ethereum Classic was likely to continue its slide below $18.35 and as low as $13.11, which was the level of support that it had from July.
Social Dominance and sentiment were positive but price action certainly wasn’t
In the late October and early novembre, social dominance metrics and weighted sentiment metrics saw positive rises. The price did not make any notable gains between 1 November and 7 Nov. Ethereum Classic fell by nearly 30% on 7 November to $18.35
The funding rate on Binance was also very negative. This indicated that short positions were well populated, while long positions paid the shorts. It reflected a bearish sentiment but also highlighted the possibility that the market could be too extended to the downside.
However, this does not necessarily mean that prices will rise. The $21 timeframe level of significance was flipped to resistance and another wave may be on the horizon.