Ethereum Classic (ETC) has been a complete disappointment for a lot of investors in the past. The price failed to rally at the same pace as the rest of the market and thus investors who were betting big on Ethereum Classic (ETC) did not profit as much as those that bought Ripple (XRP) or EOS(EOS). However, Ethereum Classic (ETC) is known for making its own moves at times which has served the cryptocurrency a lot well and investors who had been hodling Ethereum Classic (ETC) since the beginning of this correction would have lost the least compared to those holding other coins including Ethereum (ETH) and Ripple (XRP).
Ethereum Classic (ETC) has been the quick buck artist’s nightmare. The weekly chart above for ETC/USDshows exactly why. The price of Ethereum Classic (ETC) entered a diamond formation since 2017 that extended all the way to the end of 2018. Many investors and market analysts expected that Ethereum Classic (ETC) might make one of its independent moves and respect this diamond formation in order to break above it later. However, we soon saw it succumb to the deadly force of Bitcoin (BTC) and the price broke the diamond formation which immediately triggered a retest of the previously tested $10 support. It also destroyed hopes of an immediate breakout for short term investors. So, Ethereum Classic (ETC) is not really one of the favorite coins in the crypto community right now. However, we have reasons to believe that is going to change in the months to come.
The weekly chat above shows the S&P 500 entering and breaking out of a diamond formation. As we can see, the price was very bullish before it entered the diamond formation. However, temporary market conditions and manipulation pushed the price of S&P 500 below the diamond formation to break out to the downside. For the amateur investor, this might have been a big red flag and time to go short. However, for the professional who factors in a lot more than technical analysis in market evaluation, it would have been a clear cut case of temporary price manipulation.
It may still have been wise to trade this breakout to the downside but it would not have been wise to expect a trend change here because the trend before the price entered the diamond formation was very bullish. As we can see on the chart, the trend continued to be bullish and the price rose from retest of the sell target, which in our case of Ethereum Classic (ETC) was $10, and then continued higher towards a new all time high.
Just as with the S&P 500 back in 2011, there is a lot more than technical analysis that points to an explosive rise for Ethereum Classic (ETC) in the days ahead. This week, Ethereum Classic (ETC) held its ETC Summit in Seoul, South Korea. A lot of popular industry leaders like Tom Lee of Fundstrat, Charles Hoskinson of IOHK, Cody Burns of Accenture and Kayvon Pirestani of Coinbase spoke at the event. There was an IOT (Internet of Things) display on Ethereum Classic (ETC). Industry leaders talked about how Ethereum Classic (ETC) is starting to make a difference and is being recognized by major players in the industry.
Ethereum Classic (ETC) has also found a bottom against Bitcoin (BTC). The weekly chart for ETC/BTC shows that the RSI is about likely to break out to the upside. Wave trend analysis for the above chart also shows that Ethereum Classic (ETC) is ready for a trend reversal. The technical indicators for ETC/BTC as well as ETC/USD are more bullish than before. Unlike most cryptocurrencies, Ethereum Classic (ETC) is due for a two years rise to make up for missing out on previous rallies. The charts show that there is room for such growth.
Ethereum Classic (ETC) is more focused on direct Dapp deployment than holding ICOs on its blockchain. If we see only a few successful Dapps on Ethereum Classic (ETC) in the months ahead, that would be monumental to the adoption and success of Ethereum Classic (ETC). The cryptocurrency is also expected to go fully IOT Compatible by November 30, 2018 according to their official roadmap. In addition to that, the Coinbase effect is yet to factor into the price of Ethereum Classic (ETC). All of these factors indicate that Ethereum Classic (ETC), the sixth largest coin by trading volume is massively undervalued at the moment and thus on the brink of a major breakout that might make it the biggest winner in 2019.