On April 23, Ethereum Classic (ETC) decreased by 7.4%, coinciding with a 2.10% drop in Bitcoin (BTC) and a 2.53% decline in Ethereum (ETH). The correction was driven by traders looking to secure profits and the unwinding of highly leveraged positions, leading to an overall market downturn. In the last 24 hours, positions worth $547.65 million were liquidated, with over $454 million being long positions. Bitcoin led the liquidations with $164 million and $134 million in long positions, while Ethereum Classic saw liquidations totaling only $802.9 thousand.
Despite the 11.16% correction from $9.68 to $8.60 within a day, Ethereum Classic maintains a bullish price structure over a longer timeframe. The bullish structure reversal occurred in August when the $7.77 level was broken, which previously served as the lower high of a downtrend. Additionally, the support level at $7.15 was tested twice, and ETC bulls managed to break new highs, confirming the upward trend on the daily chart. The Chaikin Money Flow (CMF) indicator is above +0.05, indicating significant capital inflows, while the MACD shows strong upward momentum.
The structural change was likely driven by enthusiasm for altcoins and the reallocation of capital from major altcoins. Traders and investors appear to have solid reasons to maintain a bullish outlook. If the price breaks below the recent low of $7.09, the structure could turn bearish. The $9.20 zone has become a local supply zone, as evidenced by the rapid decline below this area on Wednesday. If this zone is not reclaimed, Ethereum Classic may continue its correction. A correction could lead to levels of $8.39, $8.08, and possibly the 78.6% retracement level at $7.64. Such a drop could provide buying opportunities, with $7.09 maintaining the strength of the upward trend.
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