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.
In conclusion, cryptocurrencies share a high correlation. Where the big fish swim, the minnows follow. However, lower liquidity often leads to greater levels of volatility in smaller assets.
Therefore, ETC will likely follow wherever Bitcoin, Ethereum head next.
ETC Technical Outlook
The Ethereum classic price is capped by a descending trend line around $60.00. Despite continued efforts over the last month, ETC has been unable to clear this resistance.
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.