Ethereum Classic (ETC) Runs Into Trend Line Resistance, Sharp Decline Expected

Ethereum Classic (ETC) is once again on the verge of a sharp decline as the price has run into a major trend line resistance and already faced a strong rejection. This means that ETC/USD can be expected to decline to the 50 day moving average in the days ahead. The Stochastic RSI favors a move to the downside as well. We have seen ETC/USD perform better compared to most altcoins during the past few weeks. The price has still not tested the 38.2% Fib extension level for the second time but it is likely to decline without doing that. For now, the price is expected to continue to trade within the symmetrical triangle that it has been trading in since December, 2018. The probability of a strong move to the upside remains low as the price has topped out on both the daily and weekly time frames.

From a fundamental analysis standpoint, Ethereum Classic (ETC) has seen a lot of improvement and is certainly a better investment now given its risk/reward compared to the last time it was trading around the same time. Since then, Ethereum Classic (ETC) has seen a lot of developments some of which will have long lasting effects on the future of this blockchain. At the top of the list of those developments is the shutting down of ETCDev, the primary development team that can be credited with making Ethereum Classic (ETC) what it is today. If it weren’t for ETCDev, we would have seen the project fall apart after the Ethereum (ETH) hard fork. So, the fact that ETCDev will not be onboard during future developments will leave a strong impact on the blockchain for better or worse. So far, the change seems to be for the best as the new regime under ETC Labs seems more focused on getting things done.

The long term prospects of Ethereum Classic (ETC) also seem to have improved with ETC Labs pushing hard for Dapp development on the ETC blockchain. However, there are still some threats looming over that need to be taken into account. Talking about the fundamentals first, we do not know yet whether ETC Labs will be able to handle the technical side of things as well as ETC Dev. Let’s face it we never saw a 51% attack happen the entire time ETC Dev was operational. Soon after they leave, we see a 51% attack that severely damaged the reputation of the Ethereum Classic blockchain.

From an investment standpoint, Ethereum Classic (ETC) is at a very favorable point as the price is down almost 90% from its all-time high. Certainly, it cannot fall 100% but will have to fall a few more percentage points if it does fall further. So, this is a good time as any to be buying Ethereum Classic (ETC). The weekly chart for ETCUSDShorts shows that the number of margined shorts has decline significantly and can be expected to rise in the weeks ahead. This means that even though the price of Ethereum Classic (ETC) is already down 90% from its ATH, it is still likely to drop further but again, this is the time to be buying not selling.