On Wednesday, April 23, Ethereum Classic (ETC) fell 7.4%, reaching a low of $8.60. This price drop followed a 2.10% decline in Bitcoin, triggering a wider market correction.
The $164 million liquidation surge for Ethereum Classic
The cryptocurrency market faced a massive wave of forced selling, with total liquidations reaching $547.65 million. According to the report, Ethereum Classic accounted for $164 million of those liquidations, highlighting the asset's sensitivity to Bitcoin's price movements. This volatility is part of a growing trend where increased market leverage leads to cascading liquidations during even minor price swings.
As the source notes, long positions accounted for roughly $454 million of the total market-wide liquidations. This indicates that the current correction is driven largely by the unwinding of overleveraged bullish bets rather than a fundamental shift in the asset's long-term value.
A technical battleground between $8.39 and $7.64
Analysts are currently monitoring several key price points to determine if Ethereum Classic can maintain its long-term uptrend. The report suggests that the asset might retreat to a range between $8.39 and $8.08, with a deeper correction potentially hitting the 78.6% Fibonacci retracement level at $7.64.. If the price reaches $7.64, traders may look toward the $7.09 support line as a primary buying zone.
Short-term swing traders are expected to focus on these immediate support and resistance dynamics. Meanwhile, long-term holders will likely prioritize whether the asset can hold its broader bullish structure, which has been in place since the market breached a $7.77 level in August.
The August bullish structure and the $7.77 breakout
Ethereum Classic has maintained a bullish structure on higher timeframes despite the recent slump from a high of $9.68. This trend was established when the price breached a $7.77 lower high that had previously defined a downtrend. While the $9.20 zone recently acted as a supply area that failed to hold,the underlying daily chart remains focused on sustaining the momentum gained since that August breakout.
The asset's potential for recovery is often linked to its unique technical profile. The report mentions that Ethereum Classic's commitment to a "non-GMO" approach to blockchain updates and its legacy codebase may contribute to its historical resilience following such market corrections.
Conflicting data on the $134 million long liquidation figure
There is a notable lack of clarity regarding the exact composition of Ethereum Classic's recent liquidations. While the report states that $134 million of the $164 million in ETC liquidations were long positions ,it later claims that the ETC market saw only $802.9K in long liquidations. This discrepancy leaves investors wondering whether the sell-off was truly driven by massive ETC-specific liquidations or if the asset was simply caught in a broader market sweep caused by other large-cap altcoins.
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