Ethereum Classic (ETC) Market Structure Flips Bearish After Retesting the $25-Support Level

This came after an unfavorable U.S May Jobs Report. Its short-term momentum seemed bearish too.

Ethereum Classic [ETC] dropped to the $25-support level and seemed poised to flip its higher timeframe market structure bearishly. This came after an unfavorable U.S May Jobs Report. Its short-term momentum appeared bearish too.

In a recent analysis, AMBCrypto highlighted that the $28.4-$29 zone could be revisited before a bounce. However, ETC dropped more than expected. Ergo, the question – How do traders react to the recent price action?

The $29-support level did not hold (4-hour chart)

Source: ETC/USDT on TradingView

The recent higher low was set at $25.19 on 13 May. The price drop on 7 June, touched $25.07, but did not close a daily session below $25.19. Hence, the bulls appeared to have the upper hand on the higher timeframe, though it seemed tenuous.

The Directional Movement Index saw the -DI (red) jump above the 20-mark. It was an early sign that the trend could be shifting bearishly, as the ADX (yellow) would also need to climb past 20 to signal a strong downtrend in progress.

The CMF was at -0.09, indicating significant capital flow out of the market. This selling pressure has been present for a week. It would need to turn around for bulls to regain some hope.

Futures market highlighted intense bearishness (4-hour)

Source: Coinalyze

Over the past 10 days, Ethereum Classic has steadily risen from $31 to $28.6. The past 24 hours saw a flurry of selling activity spurred by Bitcoin [BTC] though. Hence, ETC fell by 14.32% in a single 4-hour trading session, followed by a bounce from $25.07 to $27.

The Open Interest also fell sharply alongside the price, showing bearish sentiment and a reluctance to enter positions due to volatility. The spot CVD continued its downtrend too. The volume indicators agreed that selling pressure was firm.

The bulls would need to change this to re-establish an uptrend on the lower timeframes.