The Ethereum classic price cannot seem to break free from the danger zone. A return to $46.50 could open the door to much lower prices for ETC.
ETC is last trading at $56.58, higher by $1.199 (+2.18%).
Ethereum classic is the legacy chain of the Ethereum network. According to CoinMarketCap, since the hard fork in 2016 the network’s technical roadmaps have continued to diverge: The prices have certainly have at least.
ETC currently has a market cap of $46.6 billion vs. Ethereum’s, which is more than a quarter of a trillion dollars.
Although Ethereum plays second-fiddle to Bitcoin in size, it’s five times more valuable than the 5th placed Binance coin. ETC, on the other hand, is a long way down the list and ranked at 22.
Despite these obvious differences, the Ethereum Classic price chart is a carbon copy of ETH’s. In fact, you can overlay almost any combination of crypto assets and see similar results.
A clear break of the trend could take ETC as high as the $77-80.00 range. Coincidently, this aligns with the 0.618 retracement level of the March-May parabolic rally.
A rising trend line from the April low provide should be viewed as a critical level of support. Not only does this line signal the start of the melt-up, but it also proved to be the bottom of the May 19th crash.
The supportive trend can be seen at $46.50 and in my opinion should be viewed as extremely important.
If ETC loses this support level, it could lead to a raft of liquidations, resulting in a substantial loss of value.
On that cheery note, we should consider ETC’s dependency on the broader market. The prospects for Cryptocurrencies as a whole remain robust.
Ethereum will soon be transitioning to a leaner, meaner Ethereum 2.0, Bitcoin has recently gained status as legal tender, and the eco-system is brimming with exciting new prospects.
Therefore, I will reserve judgment on which scenario plays out in the short term and remain cautiously optimistic in the long term.