The Ethereum Classic price has been under pressure in the past few weeks. The ETC is trading at $46.33, which is about 73% below the year-to-date high. The coin is trading at its lowest since May 23, bringing its total market capitalization to more than $5.6 billion.
Ethereum Classic news. Ethereum Classic rallied a few weeks ago as the price of the main Ethereum surged to more than $4,000. As a result, ETC became a viable alternative for retail traders who wanted to have exposure to ETH. For one, with a small amount of money, it was possible to buy more ETCs than ETHs and benefit as the price rise. As I have written before, the ETC and ETH relationship is similar to that of gold and silver.
The Ethereum Classic price weakness continued last week after the relatively hawkish Federal Reserve interest rate decision. The bank sent hints that it will start tapering its quantitative easing policy soon and start raising interest rates earlier than expected. In most cases, risk assets like cryptocurrencies and growth stocks tend to underperform when the Fed is hawkish.
Ethereum Classic price technical analysis
On the four-hour chart, we see that the ETC price has been under intense pressure lately. That has seen it drop against the 25-day and 15-day exponential moving averages (EMA). At the same time, the price has formed a falling wedge pattern, which is usually a bullish factor.
Therefore, in the near term, with the falling wedge approaching its level of confluence, I suspect that the price will break out higher. If this happens, the next key level to watch will be the psychological resistance at $60, which is about 30% above the current level. However, a drop below the lower side of the channel will invalidate this prediction.