Ethereum Classic Loses its Correlation to ETH

Ethereum Classic has lost its correlation to Ethereum in the recent price rally for the cryptocurrency market.

The hard fork coin of the Ethereum blockchain was holding a steady correlation to ETH and even outperformed into the May market highs. The price of ETC has been lagging its predecessor since then and this is likely down to increased institutional investment in Ethereum.

Bloomberg analysts said that an ETF product could be released for ETH soon and that it would beat BTC to being the first backed by the spot market.

Ether futures-based ETF applications were logged with the SEC in the summer, but VanEck and ProShares both withdrew their applications on August 20th. The firms said that the SEC were not likely to approve them yet. However, Bloomberg saw the first quarter of 2022 as a potential date.

“Though a spot Bitcoin ETF is possible in 2022, SEC approval may take longer due to concerns about regulation in the underlying bitcoin market,” Bloomberg said.

If Ethereum continues to see investment flows then ETC could play catch up once again.

ETC Price Analysis

The price of ETC is now trading at $50 and is consolidating after a sharp rally in May to highs near $175. The appetite for ETC seems to have faded after the previous upgrades and the price is down 10% since late-June. In that same time period, ETH has advanced by 78%. Ethereum Classic has support levels at $45 and $37.

ETC Price Chart