Ethereum Classic (ETC) has pumped by over 16% after Coinbase confirmed that consumer customers can now buy and sell ETC through the platform. This pump was expected given that this was the biggest news around Ethereum Classic for the last few weeks. The big question now is, will Ethereum Classic (ETC) hold on to these gains, in a market that is now trading sideways, after bitcoin bounced off the $6000 support level?
Well, from the weekly charts, it is clear that Ethereum Classic’s overall direction is not yet clear. That’s because even after the Coinbase pump, Ethereum Classic is yet to clear above last week’s bearish candle that saw it drop from $21 to $12. This week’s price surge has only pushed Ethereum Classic to the 100-day moving average support level at $13.
This means that Ethereum Classic (ETC) is still vulnerable, and has the risk of dropping below this support level, if this positive momentum doesn’t hold. That risk is also quite visible in the day charts where after two days of gains prior to the Coinbase listing, Ethereum Classic is yet to hit the daily resistance level at $16.31 on the 55-day moving average.
This points to a scenario where Ethereum Classic is being pushed by Coinbase listing news, but is also weighed down by the lack of momentum in the entire market. Therefore, if bitcoin fails to hold above $6500, then Ethereum Classic could erode all the gains it has made in the last 48 hours. It could easily drop back to $11, which is the long-term support level. On top of that, if bitcoin breaks below $6000, then this support level may break too, as happened recently when Ethereum Classic (ETC) tested new lows at $9.
On the flip side, if bitcoin continues trading sideways, between $6500 and $6200, then Ethereum Classic (ETC) could make some short-term gains that are independent of the rest of the market. These gains will be supported by the upcoming launch of ETC/USD pair on Bittrex. With the Coinbase listing still hot in the market, the upcoming Bittrex listing makes ETC one of the few cryptos with some confirmed good news, in a market that doesn’t have much happening at this moment. But if the Bittrex news don’t push it above $16, and bitcoin remains in its current state, then short-term buying momentum in ETC could drop, and pull down the price down to around $10 – $11.
Short-term, Ethereum Classic’s ability to hold on to its recent gains is fully dependent on how high it goes after the Bittrex news on the 20th. If these news don’t add much to the current pump, by pushing it above $16, then these gains will not hold. It will be a nice opportunity for traders to enter short positions. Sellers will be emboldened by the fact that bitcoin (BTC) is trading sideways, which is not good for altcoins.