Ethereum Classic Takes a Dive: Bears Celebrate, Investors Cry

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So, it seems Ethereum Classic decided to throw itself a little pity party, sliding down nearly 9% in the last 24 hours. You could almost hear the bears clinking their glasses in celebration, right? This drop isn’t just a minor hiccup; it’s a full-blown ‘I-can’t-believe-this-is-happening’ moment, with market sentiment skewed so heavily toward bearish traders that you’d think they were weightlifting champions.

Capital concentration favors bears

In what can only be described as a liquidity exodus, about 9% of capital has packed its bags and left the Ethereum Classic [ETC] perpetual market. Now we’re sitting at around $90.12 million in open interest-an amount that sounds impressive until you realize it’s mostly lined up behind the short sellers. It’s like the last slice of pizza at a party, and everyone is fighting over it.

As of this minute, the Open Interest-Weighted Funding Rate has taken a nosedive, landing at a delightful -0.0282. That’s one of its steepest plunges since October 2025, a time when prices were also doing their best impression of a rollercoaster.

When the funding rate is negative, it’s like sending out a distress signal: short traders are paying long traders, which suggests that the bears are not just lurking; they’re throwing a full-on rave.

And let’s not even get started on liquidation data. Long positions are taking a beating while short sellers seem to be lounging on the beach sipping cocktails. This imbalance is practically shouting, “Bears rule, bulls drool!”

Market structure sends mixed signals

Despite the gloomy derivatives outlook, the price structure is putting on quite the cryptic performance across various timeframes. On the daily chart, ETC is stuck in a descending channel, which sounds fancy but basically means it’s sliding down a slope. Now, descending channels usually come with a side of bearish implications, but who doesn’t love a good plot twist? If it manages to break above the upper resistance boundary, we might just witness a miracle.

As of right now, the price is hovering near the middle of this channel like it can’t decide whether to stay or go. If it makes a bold move above $9.94, we might just have a short-term recovery on our hands. Or we could just continue this sad decline into oblivion. Who knows?

Long-term, though, things look about as promising as a rainy day picnic. The broader monthly timeframe paints a picture that resembles more of a messy breakup than a romantic comedy. Essentially, it’s trending lower, showing a large consolidation pattern that looks like it’s trying to hold onto its last shred of dignity.

Right now, the price has already slipped beneath key support, edging closer to an all-time low on its Binance monthly chart. If it breaks below this level, well, grab the popcorn because it’s going to be a show.

Short-term bounce possible?

But wait! Don’t hang up your party hats just yet. Momentum indicators are whispering sweet nothings of temporary relief. The Moving Average Convergence Divergence (MACD) has shown the blue MACD line flirting with the orange signal line like it’s at a high school dance. Meanwhile, green bars are popping up on the histogram like happy little mushrooms, suggesting some bullish momentum could be brewing.

Likewise, the Aroon Indicator is also feeling a bit optimistic, with the Aroon Up (orange) holding its head high above the Aroon Down (blue). It’s like watching a desperate game of limbo, trying to see how low we can go.

If momentum decides to stick around for a while, there’s a chance that ETC might experience a little bounce back in the near future. But let’s be real-unless it can strut above $9.94 and stay there, the overall bearish trend is still waving its big red flag.

To sum it all up, the bears are having a field day, while the long-term structure continues to stay pessimistic. The technical indicators are hinting at a possible near-term bounce, but let’s keep our eyes peeled because those downside risks are still lurking in the shadows.

Final Summary

  • Ethereum Classic (ETC) took a nosedive of nearly 9% – Open Interest fell to $90.12M, Funding Rate turned negative at -0.0282.
  • A move above $9.94 may decide whether ETC stabilizes or keeps crashing the party.

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2026-02-23 04:39