The ETC price is attempting to make a comeback after slumping in the past three straight days. Ethereum Classic is trading at $48, which is a few points above this week’s low of $44.62. This price action brings its total market capitalization to more than $6.22 billion, making it the 28th biggest coin in the world.
Ethereum Classic is a blockchain project that came out of the major Ethereum hard fork a few years ago. From a fundamental perspective, Ethereum Classic has failed to catch up. Unlike Ethereum that has been used to build hundreds of projects, very few well-known projects are built using its technology.
This is partly because of the safety issues considering that it is popular with 51% attacks. Some of the apps built on the platforms are the likes of Aqua Bank, OriginalMy, and Arena Racing. They are not popular.
At the same time, the ETC price has done relatively well. It has risen by more than 800% this year alone, making it a top performer. In my view, this price action is mostly because of retail investors’ desire to have exposure with Ethereum. As ETH price rallied to more than $3,000, so did the desire to own ETC for less than $50 rise.
The daily chart shows that the ETC price formed a double-top pattern at $78. This pattern is usually a bearish sign. Its neckline was at $58.66, which is slightly above the current level. It remains slightly below the 25-day and 50-day moving averages. A double-top pattern is usually a bearish signal.
Therefore, the token will likely maintain its bearish trend since this rebound seems like a dead cat bounce. In the near term, we can’t rule out a situation where ETC declines below $40.