Ethereum ETHUSD
The Ethereum Classic price has bounced back after falling sharply last week. ETC is trading at $80, which is 107% above the lowest level last week. It has a market capitalization of more than $8.9 billion and is the 17th biggest cryptocurrency in the world.
What happened: A few weeks ago, Ethereum Classic staged a major rally that pushed its price to an all-time high of $176. This was a remarkable rally since ETC was trading at just $5 when the year started. This performance was mostly because of the stellar performance of Ethereum.
Like I wrote at the time, ETC is often seen as a proxy for ETH. In other words, most people who buy it do so as an indirect bet on Ethereum, which trades at a premium. It is a similar relationship like that of gold and silver and Bitcoin and Bitcoin Cash.
Therefore, in case of an overall rally in cryptocurrencies, ETC tends to do better than ETH. On the other hand, in case of a major sell-off, ETC tends to do worse than ETH. Indeed, in the past 24 hours, ETH has bounced back by 21% while ETC has gained by 50%. So, what next for Ethereum Classic?
The daily chart shows that the ETC price has bounced back substantially in the past few days. It has moved from the 78.6% Fibonacci retracement level and crossed the 61.8% retracement. It is now approaching the 50% retracement. Also, the coin has managed to move above the 25-day and 50-day moving average, which is a sign that bulls are gaining control.
Therefore, in the near term, the coin may keep falling as bulls target the 50% retracement at $90. If it moves above that, it will open to the possibility of it rising to the 38.2% retracement at $110. On the flip side, a drop below the 61.8% retracement at $70 will invalidate this trend.
Follow Crispus on Twitter.
