Ethereum Classic (ETC) has weakened nearly 40% since September 06, falling from a high of $42.35 to a low of $25.74. The current price of ETC stands at $25.90, which is more than 50% off from its 2022 highs registered in March.
But where is the price of Ethereum Classic (ETC) going next, and what can we expect from the fourth quarter of 2022?
Today, Crypto Lists will discuss Ethereum Classic (ETC) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Ethereum Classic (ETC) continues to lose its value
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Ethereum Classic is a smart contract platform that allows users to exchange money, property, shares and provides a way to manage digital assets without the need for intermediaries. Ethereum Classic came into existence on July 20, 2016, as a distributed network consisting of a blockchain ledger, native cryptocurrency (ETC), and a robust ecosystem.
Ethereum and Ethereum Classic were initially based on the same code, but Ethereum Classic has since differentiated its technology. The biggest difference is that the Ethereum Classic community has vowed to continue using proof-of-work mining, and it is also important to say that Ethereum Classic has adopted a fixed monetary policy. The total amount of ETC that can be created is capped at 230 million ETC, which may prove of interest to investors, who can count on ETC tokens becoming rarer over time.
Ethereum Classic (ETC) continues to lose its value at the beginning of this trading week, and traders should consider that the risk of further decline is still not over. The U.S. central bank signaled more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year before topping out at 4.60% in 2023.
Supply: 136,116,727 / 210,700,000
Release date: July 30, 2015
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This week, several important macro-economical data reports will be released from the U.S., which will most likely cause some movements in both the stock and the cryptocurrency markets. CPI data will once again tell investors how financial regulators handle inflation in the country, which is very important because Fed Chair Jerome Powell recently said that U.S. central bank officials are strongly resolved to bring down inflation from the highest levels in four decades and will keep at it until the job is done.
The upside potential for Ethereum Classic and the cryptocurrency market remain limited in Q4, especially if the U.S. Federal Reserve continues with aggressive monetary policy. Goldman Sachs analysts recently opined that the Fed would accelerate the speed of rate hikes in the light of recent economic data, while analysts at Nomura expect that new inflation data might prompt the central bank to implement an even bigger rate increase.
Investors are worried that another big interest rate hike from the U.S. Central Bank could trigger an even bigger sell-off, and in light of this, Ethereum Classic (ETC) might have a hard time holding above the current price levels. It is important to mention that the cryptocurrency market is correlated with the stock market, and if a downtrend is witnessed in the stock market, the same is usually replicated in the cryptocurrency market. Billionaire hedge fund manager Paul Tudor Jones said this Monday that the Federal Reserve will likely push the economy into a recession in the near term as part of its battle against inflation. Paul Tudor Jones said:
“This means more pain for financial markets, but once the Fed stops raising interest rates, the market could see a massive rally.”
Technical analysis for Ethereum Classic (ETC)
Ethereum Classic (ETC) has weakened from $42.35 to $25.74 since September 06, 2022, and the current price stands at $25.90. Ethereum Classic might have a hard time holding above the $25 level in the upcoming days, and a break below this level would indicate that ETC could probably test the price level at $20.
On the chart below, I marked the trendline, and as long the price of Ethereum Classic is below this trendline, we can’t talk about a trend reversal, and the price of ETC remains in the SELL-ZONE.
Important support & resistance levels for Ethereum Classic (ETC)
On this chart (the period from February 2022), I marked the important support and resistance levels that can help traders to understand where the price could move. Ethereum Classic remains in the “bearish phase, “but if the price advances again above $40, it could be a sign of a trend reversal, and the next target could be located around $45. The current support level is $25, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $23. If the price drops below $20, which represents very strong support, the next target could be located around $15.
What speaks for the rise in the Ethereum Classic price
Ethereum Classic has surged more than 200% since mid-July, rising from $13.35 to a high of $45.70 reached on August 13. The sudden upswing took Ethereum Classic to test the $45 level several times, but it did not show enough strength to stabilize above it. The current price stands above $25 support, but a break below this level would indicate that ETC could probably test the price level at $20. Many surveys show that institutional investors remain bearish on Ethereum Classic, especially because of the fact that the aggressive interest rate hike policy from the U.S. central bank could trigger an even bigger sell-off. Ethereum Classic remains in the “bearish phase, “but if the price advances again above $40, it could be a sign of a trend reversal, and the next target could be located around $45.
What indicates further downfall for Ethereum Classic
Ethereum Classic and most of the major cryptocurrencies remain under pressure as many analysts agreed that the U.S. Federal Reserve would continue with its aggressive monetary policy. The current support level for Ethereum Classic stands at $25, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $23. If the price drops below $20, which represents very strong support, the next target could be located around $15.
Ethereum Classic price expectations from analysts and experts
The upside potential for Ethereum Classic and the cryptocurrency market remain limited in Q4, especially if the U.S. Federal Reserve continues with aggressive monetary policy. Goldman Sachs analysts recently opined that the Fed would accelerate the speed of rate hikes in the light of recent economic data, while analysts at Nomura expect that new inflation data might prompt the central bank to implement an even bigger rate increase. Billionaire hedge fund manager Paul Tudor Jones said this Monday that the Federal Reserve will likely push the economy into a recession in the near term as part of its battle against inflation. According to Paul Tudor Jones, this means more pain for financial markets, but once the Fed stops raising interest rates, the market could see a massive rally. Head of Galaxy Digital fund and former Goldman Sachs fund manager Mike Novogratz also said that cryptocurrencies would not make any significant jump until the Fed shifts its policy from hawkish and goes back to monetary easing.
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Ethereum Classic is spiking 50% this week
