- Ethereum Classic is seeing a sharp drop in the market cap, which indicates an increase in selling pressure
- ETC investor sentiment has seen a change and is favoring the coin at the time of writing
Ethereum Classic [ETC] It retested the short-term descending resistance line last week. The price gave a sideways performance rather than a downward correction or upward breakout. Fast forward to the present and at the time of publication ETC was showing signs of a price slide.
Read about Ethereum Classics [ETC] Price forecast 2023-2024
ETC has been trading alongside a resistance line for the past few days and recent notes point to a possible bearish outcome. One such observation was the market value outflows. The ETC market cap is down about $82 million in the last 24 hours at the time of writing.
This was the largest daily drop in the cryptocurrency’s market capitalization in the past seven days. Moreover, the bearish note was not the only indication of a bearish start for Ethereum Classic.
The measure of social dominance has also seen a significant decrease in the last 24 hours. This indicated that investor interest was shifting elsewhere.
Binance’s funding rate has also dropped significantly, especially in the past two days. This confirms that demand in the derivatives market has also slowed.
Should Investors Expect a Deeper ETC Crash?
The decline in stock market value and other metrics indicates a downward trend. While this looks like the beginning of a downward correction, there were some factors in favor of ETC while some were against it. One of the main factors that indicated a high probability of a bearish outcome was the ETC price action.
ETC has fallen nearly 5% in the past two days. While this may look like a slight decline, the most important thing is that it threatens to push the price back into the narrow support and resistance range.
Investors can expect a strong downtrend if the sell-off picks up, leading to more outflows. On the other hand, there is still a high probability that ETC whales will be able to get more ETC. This may support an upward reversal.
The main reason for the possibility of a strong bullish retracement was the fact that investor sentiment had changed. However, weighted sentiment continues to rise despite the overall bearish trend.
What is the final position of ETC?
There was no doubt that Ethereum Classic looked bearish at the time of publication. But weighted sentiment can be a game-changer in terms of expectations.
If investor sentiment continues to rise, that means we could see a massive backlog. Such an outcome is likely to discourage ETC from further bearishness and possibly benefit the bulls.