Grayscale knows something about Ethereum Classic that retail doesn't as it offloads 28,382 ETC

  • Ethereum Classic price is contemplating testing a confluence of resistance level around $61.84.
  • Grayscale Investment offloads 28,382 ETC over the past month, suggesting shifting goalposts.
  • A decisive 12-hour candlestick close above $61.84 could lead to a 35% upswing to $83.88.

Grayscale, one of the largest cryptocurrency investment companies, have been selling their Ethereum Classic holdings for over four months. This rapid decline in their ETC holdings paints a bearish picture. However, from a technical point of view, Ethereum Classic price displays a potential bullish outlook.

Grayscale changes its view on Ethereum Classic

Grayscale’s thesis on ETC banks on various aspects like the team behind the projects, ranging from ETC Labs Core, IOHK to ETC Cooperative, and fundamental elements like scarcity, divisibility, decentralization and so on.

However, the most crucial consideration is that their assumption mentions that ETC can capture a portion of the “digital store of value” market.

Based on this and other industries that ETC could potentially affect, the investment thesis written in May 2018 projected that it might grow eight-fold in the coming days, which puts it at $125.40 per coin.

However, Grayscale has offloaded 28,382 ETC over the past month, reducing their holdings from 12.54 million to 12.32 million. While this paints a bearish picture, one can assume that this decision comes as Ethereum Classic more than surpassed the projections made in the investment thesis since ETC hit an all-time high of $179.83 during the recent bull run.

ETC Grayscale holdings chart

ETC Grayscale holdings chart

Despite this bearish backdrop of news, Ethereum Classic price shows a bullish bias from a technical standpoint.

Ethereum Classic price eyes retest of range high

ETC price rallied 48% after dipping below the range low at $39.69 on July 20. The upswing that followed came extremely close to testing a crucial resistance level at $59.46.

However, investors seem to have started booking profits, which has led to a minor pullback. This retracement could extend up to the July 25 swing low at $45.85, leading to the formation of an equal low.

Such a development could trigger a massive uptick in buying pressure that catapults Ethereum Classic price to produce a decisive 12-hour candlestick close above the 50% Fibonacci retracement level at $61.84. This move will confirm the presence of buyers and set the stage for a further uptrend.

If this were to happen, ETC might likely run up to retest the range high at $83.88, roughly a 60% climb from the current position – $52.16.

ETC/USDT 12-hour chart

ETC/USDT 12-hour chart

Supporting this uptrend is the recent Magneto hard fork that was implemented on the main chain on July 24. This update brings Ethereum Classic blockchain the much-needed boost to increase network security, reduce costs and cut energy consumption, among other upgrades.

The hard fork comes after months of beta testing on the Morder and Kotti testnets. 

Interestingly, ETC price has rallied 24% since July 24 and the magneto hard fork seems to have had a hand in this surge.

While this upgrade combined with the potentially bullish outlook makes sense, things could go awry for Ethereum Classic price if the pullback extends beyond the July 25 swing low at $45.85. Such a move would produce a lower low, indicating weak bullish momentum.

This development could also lead to a retest of the range low at $39.79.


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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Solana price to drop another 50% as SOL looks for support

Solana price falls below the daily Ichimoku Cloud with the Chikou Span below the candlesticks and in open space – prime positioning for a start to a bear market. However, the true extent of how bearish Solana's future price behavior could be is represented best on a Point and Figure chart.

More Solana news

SafeMoon presents massive buying opportunity before 80% breakout

SafeMoon price, one of the most outstanding performers of 2021, is now one of the biggest pump and dump examples of 2021. After rising nearly 600% between September 29th and October 29th, SafeMoon crashed more than 88% to create a new all-time low on December 4th.

More SafeMoon news

Axie Infinity price correction to accelerate towards $80

Axie Infinity price has certainly not been immune to the massive selling pressure during and after last Saturday's flash crash. While some sub-sectors of the crypto market may recover, Axie Infinity and other metaverse cryptos have further to fall.

More Axie Infinity news

CME opens Ethereum to a wider investors audience with new Micro Ether futures

CME Group had announced the launch of its Micro Ether futures in November to meet the rising institutional demand for Ethereum. The firm has now expanded its derivatives offerings with the second micro crypto product in 2021. 

More Ethereum news

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!