Ethereum Classic price has crawled back in the past few days as investors buy the dip. The ETC token is trading at $16.16, which is slightly above this week’s low of $12.60. This price is about 70% below its highest level this year and 90% below the highest point in 2021. Its market cap has risen to about $2.1 billion, making it the 32nd biggest coin in the world.
Ethereum Classic and other cryptocurrency prices have been in a strong bearish trend in the past few months as investors worry about the change in tune by the Federal Reserve. The bank has committed to tightening in the coming months to fight the soaring inflation. Data published this week showed that the country’s consumer inflation surged to the highest level in four decades.
Ethereum Classic price has also dropped as concerns about the blockchain industry remain following the recent crash of Terra and its ecosystem. In addition, other well-known blockchains like Celsius, BlockFi, and Three Arrows have come under intense pressure.
Most importantly, ETC price has struggled because of the state of the ecosystem. This ecosystem is made up of platforms like Token Factory, ETC Swap, and ETCBayc, among others. Unfortunately, activity within this ecosystem has been a bit inactive, according to on-chain data.
The daily chart shows that the ETC price has consolidated in the past few days. It is sitting slightly above the important support level at $15.52, which was the lowest level on May 12th. In addition, the coin is below the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has pointed upwards.
Therefore, the Ethereum Classic price is still in a bearish trend at this stage, with the next key level to watch being at $10, which is about 33% below the current level. A move above the resistance point at $17.65 will invalidate the bearish view.
This post was last modified on Jun 24, 2022, 09:50 BST 09:50