Ethereum Classic (ETC) has made a new low by breaking a critical $4.2 support and settling just above $4. It is still likely to remain in the descending channel it has been trading in since July. However, if the price breaks below $4, it is extremely likely to lead to significant downside. A fall to $2.5 from current levels is likely to be a quick one but it might take a lot of time to recover from there. Ethereum Classic (ETC) never been this undervalued in its entire history, but it has taken the fall with Bitcoin (BTC) same as the rest of the market. The daily RSI for ETC/USD has reached its lowest level ever. That does not mean though that further downside cannot be expected.
Trading volume for ETC/USD is starting to recover but sell volume is still dominant. There is a serious lack of bullish interest in Ethereum Classic (ETC) at the moment. The development teams for Ethereum Classic (ETC) have recently become quite active on social media forums to announce their plans and achievements. Ethereum Classic (ETC) was supposed to become fully IOT Compliant by November 30 this year but the ETC Dev Team was right to postpone it because it would have been a non event given the current state of the market. In fact, Ethereum Classic (ETC) has seen a lot of positive developments in the past few months but none of them seem to have made any positive impact on its price. The price has reacted more to bad news than good ones as one should expect in a bear market.
Chart for ETC/BTC (1D)
It is pertinent to mention though that seeing Ethereum Classic (ETC) priced below at $4 is absolutely mind blowing. This goes on to show how little understanding the majority have of different projects in the market. It is also a very strong indicator that we are in very early stages yet. It is like being in the dot com era with people seeing Amazon as just some company that sells books. That is exactly what comes to mind when you think of Ethereum Classic (ETC) at its current stage. The majority believe that it is just another blockchain like Ethereum (ETH) or worse, a fork of Ethereum (ETH) and thus has nothing new to add. They are not much to blame considering the growing number of useless coins we have seen in the market since last year.
Instead of taking their time to separate the wheat from the chaff, most people just generalize and call everything a scam or a sh*tcoin besides the few overrated coins they hold. Investing in cryptocurrencies at this stage is no different than investing in new tech startups during the dot com era. In the early days, it did not matter much whether you invested in Yahoo or Google, but soon the times changed and then it made all the difference. A few years back, it would not have mattered whether you invested in Ethereum (ETH) or Ethereum Classic (ETC) but those days are long gone now. In the next five to ten years, it is going to make all the difference when it is not about the blockchain anymore but what you can actually do with the blockchain.