Ethereum Classic [ETC] fell by 7.4% on Wednesday, 23rd April. The correction was likely due to the 2.10% price dip Bitcoin [BTC] faced. Even Ethereum [ETH] was forced to drop by 2.53% as selling pressure from profit-taking and the unwinding of overleveraged long positions forced a market-wide fall.
According to CoinGlass, the last 24 hours witnessed $547.65 million worth of liquidated positions across the market. Of these, just over $454 million were long positions.
Bitcoin led the pack, with $164 million in liquidations and $134 million in longs. By comparison, ETC saw only $802.9K in long liquidations.
What next for Ethereum Classic?
Despite the 11.16% correction from $9.68 to $8.60 within a day, Ethereum Classic has maintained a higher timeframe bullish price structure on the charts.
The swing structure flipped bullishly in August when the $7.77 lower high of the downtrend back then (green) was breached. Moreover, the $7.15-support level was retested twice, and ETC bulls succeeded in forcing new highs, confirming an uptrend on the daily timeframe.
The CMF was above +0.05, showing sizeable capital inflows. The MACD reflected strong upward momentum too.
A combination of altcoin enthusiasm and capital rotation from large-cap alts was likely behind ETC’s structure shift. Swing traders and investors seemed to have good reason to maintain their bullish bias.
The recent low at $7.09, if breached, would flip this structure bearishly.
Traders’ call to action – Watch out for a correction
The $9.20-zone has become a local supply zone, evidenced by the rapid decline below this area on Wednesday. Unless it is reclaimed, it is likely that Ethereum Classic will continue its correction.
This correction is likely to go towards $8.39-$8.08 and possibly as far as the 78.6% retracement level at $7.64. Such a dip would likely offer a buying opportunity, with $7.09 being the low while keeping the uptrend alive.
Final Summary
- Ethereum Classic rallied by 36.5% in under a week, before undergoing a major correction.
- A price dip to $8.39, $8.08, and $7.64 is possible and swing traders can look to buy if demand recovers.
