Ethereum Classic (ETC) consolidates amidst the FTX liquidity crisis!
Ethereum Classic is the fork version of Ethereum with ETC as a native coin that is used to pay gas fees on the network. Many investors treat it as an asset for the long term, but the ETC price has been consolidating in the last six months. After the news of the FTX liquidity crisis, it has broken the support, but again it starts consolidating within a range.
Many experts suggest it is a Binance-led selling pressure because Binance announced that they would acquire FTX to resolve the liquidity crisis, but later they announced they could not acquire FTX because the issue was beyond their control, so crypto enthusiasts started selling out of panic.
However, it attracts the attention of the US Congress and SEC. They are investigating the issue, so the confidence of the crypto investors bounced back, and they have started investing in their favorite digital assets. As a result, the price has regained the previous level. If you want to treat Ethereum Classic as a long-term digital asset, then read our Ethereum Classic prediction before investing.
At the time of writing this post, ETC was trading around $21.6, which is below the support of $23. Now Ethereum Classic is facing resistance around the previous support level and trading in the lower Bollinger Bands.
Most other technical indicators are bearish at this time. Overall, it is in a bear’s grip, so we do not think it is an ideal time to invest for the short term, but we have to analyze the weekly chart to get a long-term view.
Even on the weekly chart, $23 was a support, and the candlesticks are forming around that level, so it is a crucial time for long-term investors. If ETC breaks the level decisively, it will be in a downtrend.
However, if Ethereum Classic sustains over this level, it will follow a consolidation that can be an ideal time to invest. You can add it to your watchlist or invest in a safer asset like Ethereum (ETH) for the long term.