- Ethereum Classic price action slips over 1% in early ASIA PAC trading.
- ETC price action is set to break below the existing week’s low, turning the weekly performance into a negative one.
- Expect to see a possible slip to the downside towards $20.
Ethereum Classic (ETC) price action slips back to the opening price of Monday at $23.11 and even breaks below it by 2 cents. This turns the week's performance negative as traders take the current economic backdrop into account. After some surprising and upbeat earnings, reality kicks back in again as markets prepare for the next week's ECB meeting.
ETC price action recalibrates on the back of UK inflation and the ECB
Ethereum Classic price action has turned red this week after markets rallied behind surprisingly positive earnings. Investors and traders were on edge about the risk that earnings would start to drop, disappoint and hold some downgrades and negative outlook forecasts from several entities. Instead, it looks like earnings are not cracking just yet as several stocks outperform. It is creating a wave of relief and starting to see traders put money to work by going long equities and – via a slimmed-down version – long cryptocurrencies.
ETC price, however, sees sentiment worsening after UK inflation numbers revealed that inflation is still elevated and even climbing. This has stressed out traders ahead of the ECB meeting next week. Both the BoE and the ECB have the issue that they can not hike too aggressively as it would trigger a massive recession and a wave of bankruptcies in small and mid-sized corporations, but at the same time must preserve the disposable household budget of families as inflation is at risk of eating that up. ETC price thus sees an unwind of those long positions from Monday and could see a continuous fade towards Friday, with price action set to slip below the monthly S1 and hit $20.
ETC/USD Daily chart
For now, the fade looks fairly contained, and the weekly profit could still be saved should this only be a small step back. Once the US session later this evening kicks in the event that strong earnings are again put out there, expect to see traders putting back on or adding to their existing long positions. That would mean that ETC price action has room to jump higher and could touch $26 by the end of this week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.