Ethereum Classic (ETC) just fell to a new yearly low in the wake of another market crash. ETC/USD has broken several supports and market structures over the past few weeks. This has happened so often that it almost makes no sense to be looking at the ETC/USD chart right now. Whenever Bitcoin (BTC) takes a fall, most cryptocurrencies have to fall even if it means breaking below a strong support. A support is only strong as long as 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 are going to sell their altcoins first and Bitcoin (BTC) second.
Now, we may not be able to tell whether the price is going to break or hold a certain support but the buying and selling patterns over the past provide us with even more useful insights to base investment decisions around. If we look at the above weekly chart for ETCUSDLongs, we can see a large bull flag that would result in a strong breakout anytime now. With that breakout, we will be able to see the price of Ethereum Classic (ETC) rise due to a growing number of long positions. This bull flag started to form around April this year when the number of longs started to increase. It is pertinent to note that the chart for ETCUSDLongs looks a lot different than BTCUSDLongs. This is because Ethereum Classic (ETC) has been much undervalued even before the bear market.
On one hand, we have the bulls beginning to get more confident, whereas on the other hand we have the bears started to lose confidence as the number of shorts starts to fall after reaching an all time high.