Ethereum Classic price has struggled this week. ETC price has crashed to $77, which is almost 60% below its all-time high of $176. The coin has erased billions from its market capitalization, which currently stands at $9 billion.
What happened: A few weeks ago, Ethereum Classic staged a major comeback as investors used it as a proxy for Ethereum. This rally saw the coin surging by more than 3,000% this year. It also pushed it from obscurity to become one of the top 20 biggest digital coins in the world.
This week, however, concerns of the health of the overall cryptocurrencies market has seen ETC and other cryptocurrencies retreat. Indeed, bigger coins like Ethereum and Bitcoin are sharply below their all-time highs. Therefore, since ETC is a proxy of ETH, it tends to be more volatile. This is a similar way in which silver is usually more volatile than gold.
There are several key concerns in the crypto industry. First, there are concerns about the stability of Tether, the giant stablecoin. In its recent report, Tether said that its all Tethers were backed by about 3% of the US dollar. Second, there are issues of high interest rates. And finally, there are worries that we are in a bubble. This was made clear by the recent surge of meme coins like Dogecoin and Shiba Inu.
Ethereum Classic price prediction
To predict the next movements of ETC, we need to look at the recent performance of Ethereum. Like I said in my Ethereum price prediction, the coin has dropped below the 38.2% retracement on the weekly chart. This means that the coin could fall by another 20% to $2,300.
The daily chart shows that the ETC price has dropped below the 50% Fibonacci retracement level of $90. It is now attempting to retest the 61.8% retracement level at $70. It has also dropped below the 25-day moving average. Therefore, there is a possibility that the coin will keep falling as bears target the next psychological level of $50, which is about 36% below the current level.
ETC price chart
Follow Crispus on Twitter.