Ethereum Classic (ETC) experienced a sharp decline of nearly 9% over a 24-hour period, reflecting intense selling pressure and a market structure heavily favoring bearish traders. The drop was accompanied by a significant contraction in liquidity, with approximately 9% of capital exiting the ETC perpetual market, leaving open interest at around $90.12 million.
Derivatives data underscores the bearish dominance. The Open Interest–Weighted Funding Rate turned sharply negative to -0.0282, one of its steepest negative readings since October 2025. A negative funding rate indicates that short sellers are paying long traders, signaling strong bearish conviction and a willingness to maintain short positions. This sentiment is further evidenced by liquidation data, which shows long positions absorbing the bulk of recent liquidations while short sellers remain relatively insulated.
Despite the bearish derivatives backdrop, technical analysis presents a more nuanced picture. On the daily chart, ETC is trading within a descending channel. A sustained move above the $9.94 resistance level could signal a short-term recovery. However, the broader monthly timeframe shows a long-term downtrend, with the price approaching a critical lower structural support level. A breakdown below this zone could push ETC to a new all-time low on its Binance monthly chart.
Momentum indicators, including the Moving Average Convergence Divergence (MACD) and the Aroon Indicator, suggest the possibility of a short-term bounce as bullish momentum strengthens. Yet, analysts caution that unless the price reclaims and sustains levels above $9.94, the broader bearish structure remains intact, and downside risks have not fully dissipated.
