Ethereum
Ethereum Classic price is down for the third straight day as cryptocurrency prices retreated. The ETC has dropped to $55.60, which is about 70% below its year-to-date high. This brings its total market capitalization to more than $6.5 billion and is the 21st biggest cryptocurrency token in the world.
What happened: A few weeks ago, Ethereum Classic price surged as retail investors piled into the coin. This happened as the price of the main Ethereum surged to an all-time high of more than $4,000. This is a notable thing considering that ETC is mostly viewed as a proxy for the relatively expensive ETH.
Recently, however, ETC’s drop has been more pronounced than that of Ethereum. The coin’s losses accelerated overnight as investors raised concerns about the safety and privacy of cryptocurrencies after the FBI managed to track and retrieve most of the coins that Colonial Pipeline paid to Russian hackers.
Looking ahead, the next key catalyst for ETC and other cryptocurrencies will be the US inflation data that will come out tomorrow. The numbers are expected to show that consumer prices rose by 4.2% in May, the fastest growth rate in more than a decade. If inflation numbers will be stronger than expected, we will likely see cryptocurrencies drop since it will signal that the Fed will start to tighten sooner.
The daily chart shows that the ETC price has been in a deep sell-off. Along the way, the coin has managed to drop below the 61.8% Fibonacci retracement level, which is a sign that bears are prevailing. It has also dropped below the 50-day moving average but it has found some support slightly above the 100-day EMA.
Therefore, further declines will be confirmed if the price manages to move below the 100-day EMA at $49.78. Any such move will push the price to the next target at $41.7, which is along the 78.6% retracement. However, a jump above $80 will invalidate the bearish thesis.
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