Ethereum Classic (ETC) continues to trade within an ascending channel but the price has been reluctant to rally towards the top of the channel and has been consolidating the past few weeks. The 4H chart for ETC/USD shows that the price is now consolidating above the trend line support in the same manner that it did just before the major crash in November, 2018. This is as if market makers are trying too hard to put a certain pattern in front of retail traders because they want them to find exactly what they are throwing at them. What would that be? Similarities between the consolidation pattern of November, 2018 and now! If you look at the chart closely, you might be able to see that the algorithms and bots have tried real hard to make the fractals look as similar as possible.
Technical analysis is important and there are a lot of people who can draw wonderful charts and find different patterns and make useful projections. However, there is something that is a lot more important than technical analysis that is often not easy to teach and comes with practice, experience and observation. That useful tool is called market psychology. If we look at Ethereum Classic (ETC)’s price action during the past few weeks or months, it has been pretty much in sync with the rest of the market. There were bad news like the ETC Dev shutdown and the 51% attack but it did not have much effect on the price of the cryptocurrency. Now, here is where it gets interesting. Both of those events may not have had any impact on the price of ETC/USD but it had a strong impact on who holds Ethereum Classic (ETC) and who does not.
Chart for ETC/ETH (1D)
Investors who were quick to panic and sold their Ethereum Classic (ETC) on bad news like the ETC Shutdown or the 51% attack afterwards traded their coins for Bitcoin (BTC) or other cryptocurrencies. However, the coins they got rid of did not fall in price. Why? If you have been following Ethereum Classic (ETC) way before the ETC shutdown or the 51% attack took place, you would know that big players like HCM-Foxconn, Digital Finance Group and Digital Currency Group had already made some important decisions as to the future of this cryptocurrency. There is no way that the ETC shutdown or even the 51% attack caught them off-guard. When they made the decision to take over Ethereum Classic (ETC) to shape its future direction, they expected these outcomes as possibilities.
So, like any good investor when those outcomes presented themselves, they were quick to act on them. If such devastating developments like the ETC Shutdown and the 51% attack had befallen any other coin worth less than $500 million, it could have died there and then. Not only did Ethereum Classic (ETC) survive both disasters, its price did not even budge. The majority expected the price of Ethereum Classic (ETC) to go to zero after that. The majority also expected that this would be the end of Ethereum Classic (ETC) but then again, the majority is always wrong in financial markets.