Can Ethereum Classic Price Survive $800K Liquidations?
The cryptocurrency market is facing significant challenges following July’s volatility. Ethereum Classic price has not been immune to these headwinds, dropping 5.4% over the past week and an additional 2% in the last day to trade at $21.34 during US business hours on Tuesday.ETC Futures Liquidations SurgeThe Ethereum Classic futures market faced more liquidations as sell-side pressure intensified on Thursday and Friday. According to Coinglass data, long traders received the biggest beating, with over $800k liquidated in 24 hours. Approximately $50k in shorts was liquidated, undermining the intense overhead pressure that saw Ethereum Classic price fall to retest $20 support.In total, futures traders lost roughly $266 million through liquidations, with long positions accounting for $197 million and $67.5 million affecting short positions. ETC Futures Liquidations | TradingviewOver the past 24 hours, a staggering 92,214 futures traders were liquidated. The largest single liquidation order was placed on OKX, amounting to $3.9 million of ETH-USD-SWAP.Will Ethereum Classic Price Crash Or Bounce Back?Ethereum Classic price is in a precarious situation. Support at $20 must hold to increase the chances of a recovery this weekend. Its current position below all three bull market indicators, the 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), gives sellers the upper hand. As the moving averages gravitated downwards, two death crosses appeared, which added credibility to the downtrend. This means that some traders may continue shorting the ETC price in an attempt to weaken the $20 support.Based on a previous ETC price forecast, losing the $20 support is dangerous for the original Ethereum chain, hinting at sweep-through liquidity at $19.5 and $18.5. The Relative Strength Index (RSI) flaunts a bearish divergence, which is highly likely to encourage traders to short ETC.ETC price chart | TradingviewThere’s a glimmer of hope for ETC price. A falling wedge pattern has formed on the four-hour chart, suggesting a potential 9% price surge to $23.A falling wedge forms as price action creates a series of lower highs and higher lows converging into a wedge shape. Traders often enter long positions at the wedge’s breakout, targeting a price increase equal to the wedge’s height.Stop-loss orders below the wedge are crucial for risk management. On the upside, the 9% target equals the distance between the first swing high and the first swing low, which is appended on the breakout point. Frequently Asked Questions (FAQs) Liquidations occur when traders' leveraged positions are forcefully closed due to insufficient funds. This can cause price volatility as large sell orders hit the market. Support at $20 seems to beholding and a falling wedge pattern could reaffirm the bullish structure, pushing ETC to $23. Based on the analysis above, ETC is near oversold conditions which could soon prompt a recovery meaning its still a good time to buy. Related Articles SOL Price Crashes 18%, On-chain Metrics Remain Bullish: $200 Retest Soon? Will Nonfarm Payroll Data Extend Bitcoin Price Correction or Trigger Recovery to $70K? Dogwifhat Price Plummets As Open Interest Declines: Is It Time To Buy? John Isige John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.