Long Term Trend for ETC is Bearish – Sentiments are Shifting – Investors CautiousMay 20, 2019
The market cap for Ethereum has been pushed up to $27.94 billion, which is nearly 10.89% of the overall cryptocurrency market cap. The market cap of Ethereum was at $135.58 billion.
ETH has been trading in the ranges of $232.85 to $262.97 over the past 24 hours. ETH has gained 40.2%. However, ETH is currently down from its all-time high of $1,423.20 by 81.52%.
Ethereum has a false sense of decentralization. It is now seen that the distribution of ETH is not too great as 1/3rd of the ETH is held by 376 people.
ETH is focused more to be a tool of smart contracts. They are not concentrating on becoming an investable token. The whales holding the ETH have been dormant. However, then they make a market movement, the price trends change on the chart, and the markets can notice their presence.
Kim Grauer, senior economist at Ethereum, stated, “The majority of whales aren’t traders, they’re mostly holding.”
Small groups and individuals will be able to sway the market by using their wallets due to the distribution pattern of the token.
Ethereum Classic falls below the key support versus the USD on the technical charts. On reading the 4-hour chart, it is seen that ETC is in a near bull trend as it was holding an important level of 95000 satoshis. When it was about making an initial jump from the recent bottoms the Fibonacci 236 level was the first stop for the ETC.
ETC should hold the 95000 satoshi level. If it does not hold this level, it will fall down to the moving averages at 90,000 or back to its present support at 77,000.
The intermediate trend for ETC is bearish at both the 50-day moving average and 200-day moving average. This is expected to be aligned in the bearish setup. To break the intermediate bearish trend, it should close a candle above 100000, which will be down the sloping trend line, which has been formed back at the beginning of April.
The long term trend for ETC is as well bearish. There is a declining falling wedge formation, which is a pattern for bullish reversal on the weekly chart. The RSI is on the edge of the oversold area with all bullish indicators.
Where the general market movements are concerned and the sentiments shifting, institutional investors are playing a cautious game.