Ethereum Classic (ETC) Price Triangle Nears its Confluence Zone
Ethereum Classic price has gone nowhere in the past few months as its correlation with Ethereum has faded. The ETC token is trading at $48, which is about 74% below its all-time high. Its ranking among the biggest cryptocurrencies has also dropped to 36. Its market cap stands at more than $6.3 billion.
A few months ago, Ethereum Classic surged to an all-time high. This rally was nothing related to the coin’s fundamentals, which are relatively bad. Instead, many traders were buying ETC because of its close relationship with Ethereum.
The logic went like this. With Ethereum trading at more than $3,000, then investing in ETC made sense since it was trading at less than $100. Recently, however, Ethereum has gotten more expensive while ETC has gotten cheaper. Indeed, a closer look at the two charts shows that they don’t have any relationship. So, what next for ETC?
Ethereum Classic price prediction
The daily chart shows that the ETC price has been in a relatively tight range recently. As a result, the coin has moved to the same level as the 25-day MA while the width of the Bollinger Bands has narrowed. The Average True Range (ATR), which is an important measure of volatility, has also collapsed. Volume has also been relatively low.
Therefore, for now, the Ethereum Classic price will likely remain in this range since there is no well-defined trend. The triangle pattern also signals that this breakout will likely happen in the coming days since it is nearing its confluence zone.