Ethereum Classic Price: The Death Spiral Could Prove Fatal

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Written By: Elliott Laybourne
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  • Can the Ethereum classic price ever regain its former glory, or is a terminal decline into single digits more likely for ETC?

Can the Ethereum classic price ever regain its former glory, or is a terminal decline into single digits more likely for ETC?

Although Ethereum Classic (ETC) has mustered a 5.7% rally to $41.80 this morning, the bulls have little to celebrate. Whilst Ethereum (ETH) is trading around 10% below its all-time high, ETC is 78% below its own personal best. Furthermore, of all the so-called Ethereum-killers, Ethereum Classic poses the slightest threat.

Nothing highlights the divergence between ETH, ETC as the widening gap in their respective market caps. Whist Ethereum’s $520 Billion valuation places it behind Bitcoin as the second-largest crypto, Ethereum Classic currently ranks 35th behind Cosmos. But despite ETC’s relatively low value, I see no reasons for it to sustain a prolonged rally. If anything, the Ethereum Classic price could head much lower over time.

ETC Price Forecast

The daily chart shows a robust descending trend line from the May all-time high caps ETC at $46.00. Furthermore, above the trend, the 100 and 200-DMA’s, between $53.30 and $54.62, reinforce the overhead resistance.

In my opinion, unless the Ethereum Classic price clears the 200-DMA, the path of least resistance is lower. On that basis, I expect the slow bleed to continue. Below the market, Saturday’s $30.00 low is the first logical support. However, a steeper decline targets the February high of $19.22 and potentially below $10.00.

As mentioned, I will be proven wrong if the price clears the 200-Day Moving Average. Therefore, a daily close above $54.62 invalidates the bearish view.

Ethereum Classic Price Chart (Daily)

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This post was last modified on Dec 08, 2021, 08:35 GMT 08:35

Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne