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Similarly to Bitcoin and other altcoins, ETC (Ethereum Classic) has been severely impacted by the FTX liquidity crisis.
CoinGecko data show that the historical performance of the coin on the daily, weekly, biweekly, and monthly time frames is not promising for the ETH fork.
The most noticeable depreciation among these was recorded for the bi-weekly time scale, at a rate of 16.7 percent. If other measures continue to lag, what does the future hold for ETC?
ETC Stepping On Green
The token has gained 19.35% so far today. While $18.255 provides temporary support for bulls, the regression channel indicates a much stronger slump and so the bulls should not bank on it.
At the moment, the highest the price of the coin may go is $22.595, the level where buyers and sellers met during the decline from October 29 to November 3. This ceiling will begin to give way in the coming days as the coin’s relative strength index (RSI) rebounds.
Since the price of ETC is highly correlated with the price of ETH, traders and investors in the former should keep an eye on the price of ETH as well.
This indicates that the price of ETC will closely track that of ETH. There is an indication of a surge in the price of Ether from the $1,099.17 area, where it had been trading at the time of writing, although at the rate the broader crypto market is going, any decent spike may not come soon.
In addition to relying on the rising RSI readings, bulls should also consider the positive CMF figures, which signal a change in sentiment. This could counteract the recent decline in ETC’s social influence caused by the FTX insolvency situation.
Moreover, social engagements and mentions are increasing, drawing more attention to the coin.
Bulls In Charge… For Now
Despite the obvious negative decline, the market is partly under the grip of bulls, according to the available technical indicators. As technicals improve, investors and traders should continue to hold ETC for the time being.
The EMA ribbon, on the other hand, is bearish and suggests that the coin may be shorted rather than held for the long term. Nonetheless, once the market rebounds from the severe decrease caused by panic, we may expect ETC’s price to closely track that of tETH’s.
However, investors can continue to hold ETC for the foreseeable future. Traders and investors should also exercise caution. As much as possible, ETC bulls should defend the $18.225 support zone.
ETC total market cap at $2.9 billion on the daily chart | Featured image from The Market Periodical, Chart: TradingView.com
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.