The recent market selloff has once again pumped some life into Ethereum Classic (ETC) bears that were long presumed dead. The above daily chart for ETCUSDShorts presents a strong bearish setup. When the number of shorts plunged below the trend line, it was expected to create some fear among the bears because significant selloff was likely to follow. However, the recent market meltdown has led to an increased number of bears shorting Ethereum Classic (ETC) once again. The number of shorts is up more than 25% for the day but it has yet to test the trend line. That being said, it is expected to trade in the zone shown in red until Ethereum Classic (ETC) recovers.
The price of Ethereum Classic (ETC) dropped along with the rest of the market but we did see some signs of resilience. While most altcoins dropped almost 15% or higher Ethereum Classic (ETC) held its ground against such drops. However, ultimately it had to fall more with the rest of the market. That resulted in Ethereum Classic (ETC) breaking below $6 to form a new yearly low. It might have been quite unreasonable to expect an already undervalued cryptocurrency like Ethereum Classic (ETC) drop to $5 while coins like Ripple (XRP) and Stellar (XLM) openly defy Bitcoin (BTC)’s pull. However, the fact remains that a lot of people in this market do not care about the tech; they only care about the money.
Chart for ETC/USD (1W)
A lot of people seem to be bothered by manipulation. Wherever there is a market there is manipulation. It is hard to find a market which is not manipulated at times. That being said, there are certain control in place in other markets to prevent manipulation to such a degree that might do irreparable damage to the entire market. For instance, consider the number of new but promising cryptocurrency projects that have raised funds via ICOs. This market meltdown has stripped them off the funds they had raised to work on those projects. The only reason this has happened is because those projects chose to tie themselves to cryptocurrency markets. Ethereum (ETH) has been used by a ton of new companies to raise funds for ICOs.
This has resulted in a large inflow of money into Ethereum (ETH) and after those ICOs raise money with Ethereum (ETH) they dump it all on open market for fiat money without any concern for its impact on the price of Ethereum (ETH) or the general market. The recent market correction has exposed how flawed this approach to fundraising is. As previously mentioned, Ethereum Classic (ETC) always considers the long term effects of such actions. This is why the Ethereum Classic (ETC) team has been discouraging holding ICOs on the Ethereum Classic (ETC) blockchain. In fact, the director of ETC Cooperative, Anthony Lusardi recently tweeted that he would personally like to thank all ICOs for not using the Ethereum Classic (ETC) blockchain.