Ethereum Classic [ETC] has upheld its original blockchain narrative post the DAO hack, unlike Ethereum [ETH], which opted for a network upgrade.
With a current price of $18, ETC is significantly trailing behind Ethereum’s value of $2300.
Recent analysis suggests that the short-term outlook for ETC has turned bearish, signaling a possible extension of the downward trend.
Various indicators are aligning to support this pessimistic view. Following its peak at $186 in April 2021, ETC has been steadily on a downward trajectory.
The valuation of ETC against Bitcoin [BTC], the foremost cryptocurrency, has also been witnessing a decline. This trend mirrors the performance of Ethereum, underscoring BTC’s dominance in the market.
While the crypto sphere generally sees gains in the last quarter of the year, ETC’s weak position indicates a potential deviation from this seasonal trend.
Traditionally, Bitcoin’s strength tends to influence other cryptocurrencies, but ETC seems susceptible to further decline despite the typical Q4 optimism.
ETC Trades Below Weekly MAs, Breaks Trendline
Further indications of ETC’s weakness are apparent in its moving averages. Currently, it is trading below all its simple moving averages (SMA), including the 8-day SMA, indicating a bearish market sentiment.
This downward trend signals heightened risk for traders holding Ethereum Classic or those contemplating market entry for potential Q4 profits.
For Futures traders, shorting ETC could present a feasible option, particularly as trading below moving averages commonly signifies a bearish market direction.
Nevertheless, there is a glimmer of optimism for Ethereum Classic. A technical review of the ETC/USDT pair reveals a recent breakout above a descending trendline that had been restraining its price since May 2024.
Trendline breaches often suggest possible market reversals, and ETC’s surge above $18 hints at a potential bottom formation. Sustaining its price above this level could propel it to $25, offering potential returns of over 40%.
Conversely, if ETC fails to hold its current support and dips below the crucial $18 mark, the decline may persist, possibly leading to further price erosion.
While Ethereum Classic confronts significant bearish risks, there remains a chance of a short-term upswing if overall market conditions improve.
Ultimately, Ethereum Classic’s future hinges largely on market dynamics and the performance of other major cryptocurrencies.