Ethereum Classic Price Analysis: ETH/USD bears flip the bulls, target shifts to $5

Ethereum Classic is facing the ultimate correction following a massive bull-run that had it hit January highs around $12 from December lows at $3.41. The persuasive urge upwards has, however, ended in losses due to a lack of rock-solid support zones. For instance, initial support by the 61.8% Fibonacci level highlighted from the previous high at $12 to a low at $4.27 failed to stop the decline.

Ethereum Classic continued with the slide under the trendline support as well as the 50 SMA on the 4-hour chart. The 3.46% loss on Friday is seeking support at the 50% Fibo (marginally above $8.00). It is essential that the bulls keep the price above this zone to avoid a possible dive to the support at $5.0.

Technical analysis shows that the price is in the hands of the bears. The RSI has dipped under the average (at 50). The continuing downward slope has the oversold region in sight. This means that sellers will continue to tightly grip the price and push ETC below other support areas at the 100 SMA, and $6.00, respectively.

ETC/USD 4-hour chart

Grayscale to fund Ethereum Classic development

Earlier this week, Grayscale’s Ethereum Classic Trust announced its commitment to fund the development of Ethereum Classic blockchain. The support is expected to last a period of two years. Grayscale has in the past spent around $1.1 million on the development of Ethereum Classic blockchain. Moreover, according to data released by ETC Block Explorer, Gray Scale’s Ethereum Classic Trust is among the largest investors in the ETC network, holding around 14% of the coin’s total supply.