Ethereum Classic (ETC) bears were late to react to news of ETC Dev shutdown but once they spotted some weakness, they upped their short positions aggressively. In fact, the weekly chart for ETCUSDShorts shows that the number of shorts for Ethereum Classic (ETC) has now reached a new all time high of Bitfinex. For Ethereum Classic (ETC) bulls, this is a favorable development as it will ultimately bring about the trend reversal that most investors have been waiting for. The bears have no doubt overreacted to the whole situation surrounding the ETC Dev shutdown. It is not even clear yet if that shutdown is temporary, but even if it is; one needs to understand fully what it means.
In this market, the bears are seen as smart and hungry opportunists much like the whales. Now, that is all good as long as they know what they are doing. The bears that have been shorting Ethereum Classic (ETC) since its all time high would have certainly made a killing by now. However, things get messy when these bears start to feel invincible or worse, mistake themselves for being whales. Looking at the above chart, I have no other way to explain this. It sums up the overconfidence of the bears who have not only misunderstood the entire ETC Dev situation but they have put money on it. The situation right now is that the retail bears are incredibly confident and the retail bulls are too scared and confused.