Crypto Analyst Advises Shorting Ethereum Classic Below $15 Amid Bearish Sentiment

Crypto analyst Ali has advised traders to short Ethereum Classic (ETC) below $15, backed by a chart illustrating ETC’s journey from a 2021 peak near $40 to a recent low around $12, suggesting a bearish outlook as the price hovers at $16.14. This analysis comes amid a broader market cap decline of 0.42% week-over-week to $3.17 trillion, hinting at a potential shift in sentiment.

ETC, resulting from a 2016 hard fork of Ethereum following the DAO hack, has historically struggled to establish a distinct identity. Its role as a smart contract platform competes with Ethereum’s dominance, and fragmented developer support has impeded its growth. A 2023 study in the Journal of Risk and Financial Management indicates that forked cryptocurrencies often underperform originals due to community and adoption challenges—a trend evident in ETC’s volatile trajectory. The chart’s sharp decline post-2021 bull run reflects waning investor confidence.

Ali’s technical analysis leverages this context, urging a short position if ETC dips below $15. This threshold, just under the current $16.14, suggests an imminent test of support levels. The recommendation contrasts with the crypto market’s typical growth narrative, emphasizing technical signals over hype. Traders should monitor volume and resistance around $18, as a break below $15 could trigger further downside, potentially testing $12 again.

For investors, this call underscores the importance of data-driven decisions in a volatile market. While ETC’s fundamentals remain shaky, shorting carries risks—especially with unpredictable catalysts like regulatory shifts or whale movements. The recent increase in short signals for ETC indicates a bearish sentiment among traders, driven by mixed market sentiment, regulatory uncertainties, and erratic price movements. Technical indicators, such as moving averages and the relative strength index (RSI), also suggest weakness in ETC’s price.

Despite the bearish signals, some analysts remain optimistic about ETC’s long-term prospects, citing its strong community and robust development team. The recent price correction may present a buying opportunity for long-term investors who believe in ETC’s potential. However, it is crucial for investors to conduct their own research and consider their risk tolerance before making any investment decisions.