Ethereum Classic (ETC) has advanced from $36.3 above $170 since the beginning of May, and the current price stands around $109. The cryptocurrency market remains under pressure, the price of Ethereum Classic can weaken even more in the upcoming days, and maybe it is not the best moment for investing in this cryptocurrency.
Fundamental analysis: Recent price appreciation has a less fundamental background
Ethereum Classic is a smart contract platform that allows users to exchange money, property, shares and provides a way to manage digital assets without the need for intermediaries. According to its official website, Ethereum Classic is one of the purest decentralized projects in the cryptocurrency space with a bright future.
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Ethereum Classic came into existence on July 20, 2016, as a distributed network consisting of a blockchain ledger, native cryptocurrency (ETC), and robust ecosystem. At the start of this year, Ethereum Classic was worth between $5 and $6, but this cryptocurrency has steadily grown in value since then.
Ethereum Classic (ETC) price has exploded since the beginning of May, and despite the current correction, there is no risk of the trend reversal for now. Ethereum Classic maintains the original, unchanged Ethereum blockchain, but the recent price appreciation has a less fundamental background.
“The price has risen partly due to speculation following the massive Ethereum rally and partly because market participants are speculating on ETC having more relevance post the ETH 2.0 upgrade. Since ETH will move to proof of stake, leaving ETC with proof of work, traders are speculating on whether that shift will give ETC a chance to operate independently and offer an alternative to the proof of stake chain,” said Joe DiPasquale, CEO of cryptocurrency hedge fund BitBull Capital.
Ethereum Classic continues to trade in a bull market, the daily volume of this cryptocurrency remains high, but if the price falls below $80 support, it would be a firm “sell” signal.
Technical analysis: $80 represents a strong support level
This cryptocurrency has made a big jump in a short period and, if you decide to buy Ethereum Classic (ETC), you should consider that the price could also weaken from the current levels. The liquidity of this cryptocurrency has risen dramatically this month, and despite the recent correction, Ethereum Classic continues to attract attention from traders.
The critical support levels are $100 and $80, $120, $140, and $160, represent the current resistance levels. If the price jumps above $120 in the upcoming days, it would be a signal to trade Ethereum Classic (ETC), and the first target could be around $140.
Rising above $140 supports the continuation of the bullish trend, and we have the open way to a $160 resistance level. On the other side, if the price falls below $80, it would probably be a trend reversal sign, and we have the open way to $60.
Ethereum Classic (ETC) has exploded since May 01, and this cryptocurrency continues to trade in a bull market. Despite the current correction, there is no risk of the trend reversal for now, but it would probably be a trend reversal sign if the price falls below $80 support.