As numerous top20 cryptocurrencies such as Ethereum, Ripple, Stellar and Litecoin saw price rallies which prompted crypto twitter to start screaming Altseason 2.0 was upon us, Ethereum Classic (ETC) was also following its Altcoin brothers and sisters into the green. Let's take a quick look at Ethereum Classic's current price and analysis ETC/USD crypto market, for some price predictions.
Market wide price rallies, can make even the most cool headed trader go into a frenzy. Add in the fact that market was going against Bitcoin? Well then everyone tends to go into a frenzy.
Trading crypto off excitement and hype tends to translate into an increase in volatility, and we definitely saw this happen on ETC/USD market. Traders appeared to go into a sell panic late afternoon September 18th, potentially influenced by Bitcoin's bearish movements and recent $500 price drop. This caused ETC's price to drop 12% before hitting a bottom at $5.71 and starting to recover.
At time of writing ETC is trading at $6.22 and is down by -2.74% in the past 24 hours.
Ethereum Classic (ETC) Price Analysis
- Etcsummit starts October 3rd, any announcements there could influence price and many traders may simply be waiting to see direction the news takes the market.
- I recommend being wary of any price movements towards $7, due to ETC's increased media coverage around the end of August. Anyone who felt the FOMO, may have bought in under $6 and simply decide to exit now.
- Our Bollinger Bands are narrowing, it could mean we shall see ETC trading sideways between $5.90 - $6.30 or we may see a squeeze take place and be in for bigger price movements.
- Both our fast and slow stochastic indicator are leaning towards 80, which indicates overbought conditions and may be a sell trigger.
- RSI is very neutral at 55.77, not giving us any signals on current market trend.
Why the sudden price drop then?
Another cause for the sudden price drop and what is shaping up to be a quick recovery may simply have been off the back of the Atlantis fork. Though successfully implemented, it did mean many major centralized exchanges had to turn off deposits and withdrawals while doing maintenance to support the update. As Ethereum Classic trading is largely spurred by miners selling newly minted ETC, once they were able to deposit again it meant the sell pressure was larger than usual. Therefore, you could see this price drop as a logical consequence and not a signal of a bearish trend at all.
Seeing your whole portfolio enter the green is a great feeling, but it is important to stick to your crypto trading strategy and not start dreaming about the profit you COULD make. If you have hit the exit point you set for a market, then best to stick to it, after all you decided that exit price point with a cool head. Alternatively, a potential price correction can end up being a big hit.
Would love to hear your thoughts on ETC's current direction, let me know in the comments below! Also be sure to read up about our upcoming dApp Dev Kit, which will support Ethereum Classic.