The Ethereum Classic price crashed to the lowest level since June 28 as demand for the coin dried up. ETC dropped to $41.37, which is 35% below the highest point this week. It is also substantially below the year-to-date high of $175. Similarly, Ethereum (ETH) price has crashed from more than $4,000 to $1,865.
From $175 to $40. Ethereum Classic was a relatively hated cryptocurrency a few years ago. Indeed, since its launch, the coin underperformed substantially until early this year. The price shot up in April as the price of ETH surged. This increase was mostly because investors used it as a proxy for Ethereum.
The idea was that one could be able to buy more ETCs than ETHs with the same amount of money. Now, with Ethereum falling, many investors have seen no need to buy the coin. Fundamentally, they are also concerned about the Ethereum Classic ecosystem.
While Ethereum has thrived as a hub for DAPP development, very few developers have built on the network. In fact, those seeking an alternative to Ethereum have moved to alternative platforms like Solana and Polkadot. So, what next for the ETC price?
Ethereum Classic price prediction
The four-hour chart shows that the ETC price has been in freefall recently. It has formed a descending channel that is shown in black. Also, the chart shows that its volume has crashed while the price has dropped below the short and longer-term moving averages.
Therefore, a closer look shows no signals that the coin will rebound any time soon. As such, the next key level to watch will be the support at $35. The alternative scenario is where the coin has a relief rally as bulls test the upper side of the channel at around $48.
ETC price chart
Follow Crispus on Twitter.