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Ethereum Classic (ETC) has just fallen to a new annual low in the wake of another market crash. ETC / USD has broken several media and market structures in recent weeks. This happened so often that it makes no sense to look at the ETC / USD chart at this time. Whenever Bitcoin (BTC) takes a fall, most cryptocurrencies must fall even if it means breaking under strong support. Support is strong only if Bitcoin (BTC) allows it to be. Let's face it, most people in this market do not believe in other coins. If Bitcoin (BTC) is going down, they will sell their first altcoin and Bitcoin (BTC) second.
Now, we may not be able to tell if the price is going to break or hold some support, but past buying and selling patterns provide us with even more useful insights to base investment decisions around. If we look at the weekly chart above for ETCUSDLongs, we can see a large flag of the bull that would result in a strong breakout at any time. With this breakout, we will be able to see the price of the rise of Ethereum Classic (ETC) due to a growing number of long positions. This bull flag began to form around April of this year, when the number of long began to increase. It is important to note that the chart for ETCUSDLongs looks very different from BTCUSDLongs. This is because Ethereum Classic (ETC) has been very underrated even before the bear market.
On the one hand, the bulls begin to become more confident, while on the other side the bears have begun to lose confidence, as the number of courts begins to decline after reaching the historical maximum. The RSI for the weekly chart above for ETCUSDShorts shows that the number of short circuits has now reached a critical resistance. Overcoming this resistance would mean violating a long years model that is unlikely. The most likely scenario is that the number of shorts will continue to decline gradually until it moves away from the growing wedge. After breaking below the fall wedge, the number of courts is expected to decline aggressively, which means that the price of Ethereum Classic (ETC) will rise to a new all-time high in mid-2019.
Shorting Ethereum Classic (ETC) was mostly unprofitable and quite risky as we have seen in the past. For example, if we look at the table above for ETC shorts, we can see that the number of shorts reached its all-time high between September and October. A quick look at ETC / USD would confirm that this would be a very risky move given that this was just before the December 2017 rally. The number of courts peaked when the price of Ethereum Classic (ETC) peaked. When Ethereum Classic (ETC) started to fall, even the number of courts started to fall until the end of April, when it should actually be increased! This continues to show how often the crowd is mistaken about market movements. If you took this growing number of sales positions as a sign of weakness, you may have lost big gains.
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