Ethereum Classic (ETC) To Retest Trend Line Resistance Against Bitcoin (BTC)

Ethereum Classic (ETC) To Retest Trend Line Resistance Against Bitcoin (BTC)

Ethereum Classic (ETC) is on track to test trend line resistance against Bitcoin (BTC) in the weeks ahead. The daily chart for ETC/BTC shows that Ethereum Classic (ETC) has been trading in a triangle since March, 2017. Ethereum Classic (ETC) is one of the few coins to have bled for this long against Bitcoin (BTC). This downtrend is yet to see an end although there is now a strong probability that ETC/BTC may break out of the triangle during the upcoming rally. This would be very unlikely to happen during the first attempt. Ethereum Classic (ETC) certainly has enough room to rally towards the trend line resistance but once it does that, it will not have much room to break past it. The price will have to correct and consolidate before it can attempt to break the trend line resistance.

Currently, the slow stochastic indicator on the ETC/BTC daily chart points to a minor rally that should see the price reaching towards the trend line resistance. However, it shows that soon as it does that, the price will be under overbought conditions and it will have to correct before it can go up again. This supports our earlier view regarding a bull run in January leading up to mid-February. We will see a correction in February that should see most cryptocurrencies retrace significantly in order to prepare for the bull run that lies ahead. Ethereum Classic (ETC) will be one of those cryptocurrencies. Although ETC/BTC has suffered a lot in the past and has missed out on most gains, this time the situation is entirely different.

If you had been trading ETC/USD between 2017 and 2018, it would not have made a significant difference. If you had been trading Ethereum (ETH), you could have made a far bigger return on your investment. This goes on to show that Ethereum Classic (ETC) as an investment has not been a good performer. However, to give it credit where due, we cannot deny that it has long been perceived as one of the safest altcoin investments. If somebody wanted to invest in altcoins but protect against significant downside, Ethereum Classic (ETC) was the go to cryptocurrency. Ethereum Classic (ETC) exhibited this behavior by holding its ground when the rest of the market would fall. This held true for the most part throughout the bear market.

The situation has recently changed as Ethereum Classic (ETC)’s fundamentals have improved a lot more and the cryptocurrency has now become not just one of the safest altcoin investments, but it has also become of the most lucrative investments. Recent developments with ETC Labs have shown that the blockchain is headed for a brighter future where we will see more Dapps deployed on the ETC blockchain which will pave the way for mainstream adoption. It is pertinent to note that most investors in Ethereum Classic (ETC) at the moment are people who really understand and believe in the project. This cryptocurrency has yet to see interest from mainstream investors. However, once that happens, we could see the market cap difference between Ethereum (ETH) and Ethereum Classic (ETC) bridge a lot faster.

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