Ethereum Classic (ETC) is up more than 5% for the last 24 hours while the rest of the crypto market bleeds. This makes Ethereum Classic (ETC) the only top twenty cryptocurrency in the green. Ethereum Classic (ETC) is known for holding its ground during bad times, which perhaps is why the cryptocurrency is up as the rest of the market is down. This behavior has been observed in the past and it is likely that by now most investors realize that Ethereum Classic (ETC) is already too undervalued to go down further. However, this time around, the reasons for this behavior seem to be more than just stability during bad times. Ethereum Classic (ETC) is on the verge of a trend reversal as the weekly chart for ETC/USD shows. With all that has been going on with Ethereum Classic (ETC), from Coinbase listing to ETC Summit and IOT Compatibility, a lot of investors are going to want to accumulate before the next rally.
The volume price confirmation indicator on the above chart shows that the price is likely to continue to rise for the next few weeks. Whether or not it will complete the bullish gartley pattern before another wave down is not clear yet. MACD analysis for ETC/USD shows that the price already had an extensive correction and should reverse at this point. However, it is still likely for the price to continue to correct till the month of October in case overall market conditions stay as they are. There is plenty of uncertainty at the market at this time, but most investors do realize that the correction cycle is almost complete. Whether it will complete this month or the next is not yet known but for those looking to invest before the next cycle begins, this is a good entry point to start accumulating.
The correction also seems to have run its course against Bitcoin (BTC). The above weekly chart for ETC/BTC shows that Ethereum Classic (ETC) has held its trend line against Bitcoin (BTC) that extends all the way to 2016. This is the first time in almost three years that Ethereum Classic (ETC) is on the verge of a big breakout. The Squeeze Momentum indicator on the above chart shows that the bearish momentum is lost and the bulls are ready to take control as soon as the next cycle begins.
With cryptocurrencies in general and projects expecting a big breakout after years of sideways movement in particular, it is hard to time the market. Sometimes, the breakout takes all but five weeks for a coin to reach a new all time high. Investors that are waiting for a perfect bottom are likely to miss that breakout. We have seen this in the case of Litecoin (LTC) when it was added to Coinbase. There was no significant change in price in the early weeks and most people gave up. However, soon afterwards, the Coinbase effect kicked in and we all know how the price of Litecoin (LTC) skyrocketed to beyond $300 after that. This was a coin that did not have any other use case apart from being an alternative to Bitcoin (BTC) for online payments. Ethereum Classic (ETC) is a whole different project with its own distinct use cases. The sentiment right now is against Ethereum Classic (ETC) for the most part, but then again if you have been around for long you would know how Ripple (XRP) went from being a “centralized bank coin” to everyone’s “favorite coin”. Fundamentals take time to change, sentiment doesn’t.