Ethereum Classic (ETC) has finally completed its correction. The weekly chart for ETC/USD shows that the price has already begun to rally and is now struggling to break past the 5 Week EMA. This struggle is going to continue for quite some time which is why we are not likely to see a series of bull runs or exuberant rallies just yet. In fact, it is going to be a long time before we see Ethereum Classic (ETC) rallying towards its all-time high. Before all of that, we are going to see a long period of accumulation where the price will trade sideways for the most part. This prolonged period of sideways movement will allow long term investors to accumulate more Ethereum Classic (ETC) before the beginning of the bull run in the latter half of 2019.
The weekly chart for ETC/USD shows that the price has now broken a historical trend line resistance. If we look at the RSI for the weekly chart, we can see that the trend line resistance that extends all the way to April, 2017 has now been broken for the first time. This is a major breakthrough for Ethereum Classic (ETC) in light of recent developments. The teams behind Ethereum Classic (ETC) are now more focused than ever on enabling promising projects to achieve their goals and build their Dapps on the Ethereum Classic (ETC) blockchain. ETC Labs has already started taking new startups under its wing as part of its ambitious Dapp development program. One of the reasons for the recent regime change that saw ETC Dev losing to ETC Labs was the feeling that Ethereum Classic (ETC) was lagging behind despite being a blockchain with enormous potential.
The management team at Digital Finance Group (DFG) certainly felt that way and they mentioned it in a statement they released explaining the reasons behind their actions. However, we have reasons to believe that DFG was not the only entity to feel that. A lot of investors in Ethereum Classic (ETC) felt the same way when they saw other platforms making progress while Ethereum Classic (ETC) was not moving ahead of wallets and upgrades, at least in the eyes of the public. There was a strong interest in Ethereum Classic (ETC) with regards to its feasibility for Internet of Things (IOT) application. There is no denying that ETC Dev did a lot of wonderful things for the Ethereum Classic (ETC) blockchain. In fact, if it were not for them, Ethereum Classic (ETC) would probably be a dead project today.
Chart for ETC/BTC (1W)
However, it is shocking to see that ETC Dev did not take this whole interest around IOT as seriously as the community expected it to. Ethereum Classic (ETC) being a decentralized and immutable blockchain is currently the perfect blockchain in the industry for such use. ETC Dev failed to deliver on their Full IOT Compatibility deadline of November 30, 2018 but what disappointed the investors more was the fact that it had been delayed at the beginning of the year but the ETC Dev team did not even deem it necessary to inform the general community about it.
During one of our previous analyses, we mentioned that Ethereum Classic (ETC)’s recent regime change might be a blessing in disguise. Ethereum Classic (ETC)’s backers knew that such a move would spark some controversy given the aura of decentralization around Ethereum Classic (ETC). However, they still felt the need to go forward with it because they thought they could do so much more with this blockchain. It is true that Ethereum Classic (ETC) may now be in the hands of people who are in it for the money, but maybe that is not such a bad thing. If an investor had to choose between a controlling body that had nothing to lose compared to one that had money to lose from their decisions, I’m sure they would pick the one with money on the line. This is why we may see a rising investment interest in Ethereum Classic (ETC) in the months ahead but whether or not it can adhere to its original principles of decentralization and immutability remains to be seen.