Ethereum Classic (ETC) Technical Analysis (June 16, 2018)
There is excitement in the ETC world and it’s palpable if we go with statistics. Shortly after the news, ETC gained 22 percent pushing its market cap to $1.44 billion. However, contrary to expectations, ETC prices have been moving within a tight trade range with limits at $16. Should we see appreciation past that level, then we it would be a go for buyers.
Let’s have a look at these charts
From the News
The listing of Ethereum Classic was a head scratcher for many. Some were wondering what founded the rationale behind CoinBase listing a coin that ranks eighteenth in the crypto standing. But, what many forget is that ETC precedes the like of Ethereum whose figure head is the Vitalik Buterin. Besides, they still maintain a no coin burn policy. Unlike other high cap coins as EOS and Ripple which many online commentators were backing to be next of queue, ETC maintains decentralization policy and is completely open source.
We are pleased to announce our intention to add support for Ethereum Classic (ETC) on Coinbase in the coming months.https://t.co/bUG4iLUr2J
— Coinbase (@coinbase) June 12, 2018
As a matter of fact, shortly after their ETH hard fork, the development of Ethereum was split between different development group. Charles Hoskinson of Cardano oversees some bit of ETC development. No one has total control of ETC. As such, this listing is set to benefit no one in particular but the community, early investors and hodlers. It would be a different case if XRP-despite all their offers in exchange for listing or EOS because all those moves entail direct capital gains to Ripple the company and Dan Larimer’s Block One both which are private companies controlling a considerable stake at XRP and EOS.
— Ethereum Classic (@eth_classic) June 13, 2018
So, buoyed by these news, Ethereum Classic now has an incubator program where they plan on investing anywhere between $50,000 and $150,000 for three promising start-ups in exchange for nine percent equity. The program initiated by Digital Currency Group, Digital Finance Group and HCM would offer in-depth development and investment advice besides office space, networking, training amongst others once they launch their projects on the Ethereum Classic blockchain.
Ethereum Classic (ETC) Technical Analysis
Listing news not only promises exposure but positions ETC strategically as a receptor of capital from investors. This is why we anticipate ETC to gain ground in the next couple of days if not weeks. Fortunately, there is a technical and fundamental founding for this reasoning when we take a look at the charts.
First, from it we can notice that prices are reversing from $13, a support line at the back of strong market participation. In my view, despite this happening in the midst of strong sell pressure, any close above $16 or last week’s highs would be welcoming news for buyers. On the other side of the coin, any break below $13 means bears are likely to push lower and even test $8 in the coming days.
Here, it’s clear that ETC prices are oscillating within a $2 range whose upper limit is marked by June 12 highs of $16. That same level represents our intermittent buy trigger in the weekly chart and that’s why it’s worth noting in this chart. Secondly, while June 12 news was overwhelmingly positive for ETC, listing isn’t immediate.
According to CoinBase, it will take a “couple of months” before engineering and testing phases passes the grain. As such, the initial reactions was rash and characterized by irrational exuberance before recent price oscillation. Going forward, we are net bullish. However, our trade plan is valid once we see appreciation past $16. That’s when we shall place stops at $13. Before then, aggressive traders can begin accumulating anywhere inside this $3 range with tight stops at $12.