Ethereum Classic: This metric could be a game changer for ETC and its investors

  • Ethereum Basic sees sharp drop in market cap suggesting a rise in promote stress
  • ETC investor sentiment noticed a change and favored the coin on the time of writing

Ethereum Basic [ETC] retested its short-term descending resistance line final week. The value delivered a sideways efficiency somewhat than a bearish retracement or a bullish breakout. Quick ahead to the current and at press time, ETC confirmed indicators of worth slippage.

Examine Ethereum Basic’s [ETC] worth prediction 2023-2024

ETC has been buying and selling alongside the resistance line for the previous couple of days and up to date observations level towards a possible bearish consequence. A kind of observations was market cap outflows. ETC’s market cap fell by roughly $82 million within the final 24 hours on the time of writing.

Ethereum Classic market cap

This was the biggest day by day drop in market cap that the cryptocurrency skilled within the final seven days. Moreover, the bearish commentary wasn’t the one indicator of Ethereum Basic’s bearish begin.

The social dominance metric additionally witnessed a major downfall within the final 24 hours. This indicated that investor consideration was shifting elsewhere.

Ethereum Classic social dominance and Binance funding rate

Supply: Santiment

The Binance funding fee additionally tanked considerably particularly within the final two days. This confirmed that the demand within the derivatives market additionally subsided.

Ought to buyers anticipate a deeper ETC crash?

The market cap drop and different metrics pointed in direction of a bearish bias. Whereas this appears like the beginning of a bearish retracement, there have been some elements that stood for ETC whereas some that stood in opposition to it. One of many key elements suggesting a major probability of a bearish consequence was ETC’s worth motion.

ETC was down by roughly 5% within the final two days. Whereas this would possibly appear to be a small drop, the important thing takeaway was that it threatened to push the value again into the slim help and resistance vary.

Ethereum Classic price action

Supply: TradingView

Traders can anticipate a robust bearish efficiency if the selloff gained traction, leading to extra outflows. Then again, there was nonetheless a major likelihood that ETC whales might scoop up extra ETC. This might doubtlessly help a bullish bounce.

The principle motive why there was a probability of a robust bullish bounce was the truth that investor sentiment witnessed a change of coronary heart. Nevertheless, weighted sentiment nonetheless witnessed an upsurge regardless of the general draw back.

Ethereum Classic weighted sentiment

Supply: Santiment

What’s ETC’s remaining stance?

There was little question that Ethereum Basic seemed bearish at press time. Nevertheless, the weighted sentiment might be a game-changer so far as expectations had been involved.

If investor sentiment continues rallying, then it means we would see important accumulation. Such an consequence will possible cushion ETC from extra draw back and doubtlessly favor the bulls.

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