Ethereum Classic: This metric could be a game changer for ETC and its investors

• Ethereum Basic sees sharp drop in market cap suggesting a rise in promote stress
• ETC investor sentiment noticed a change and favored the coin on the time of writing

Ethereum Basic [ETC] retested its short-term descending resistance line final week. The value delivered a sideways efficiency relatively than a bearish retracement or a bullish breakout. Quick ahead to the current and at press time, ETC confirmed indicators of value slippage.

Examine Ethereum Basic’s [ETC] value prediction 2023-2024

ETC has been buying and selling alongside the resistance line for the previous few days and up to date observations level towards a possible bearish consequence. A type of observations was market cap outflows. ETC’s market cap fell by roughly $82 million within the final 24 hours on the time of writing.

This was the most important every day drop in market cap that the cryptocurrency skilled within the final seven days. Moreover, the bearish commentary wasn’t the one indicator of Ethereum Basic’s bearish begin.

The social dominance metric additionally witnessed a big downfall within the final 24 hours. This indicated that investor consideration was shifting elsewhere.

Supply: Santiment

The Binance funding charge additionally tanked considerably particularly within the final two days. This confirmed that the demand within the derivatives market additionally subsided.

Ought to buyers anticipate a deeper ETC crash?

The market cap drop and different metrics pointed in the direction of a bearish bias. Whereas this seems like the beginning of a bearish retracement, there have been some elements that stood for ETC whereas some that stood towards it. One of many key elements suggesting a big probability of a bearish consequence was ETC’s value motion.

ETC was down by roughly 5% within the final two days. Whereas this may appear to be a small drop, the important thing takeaway was that it threatened to push the value again into the slim assist and resistance vary.

Supply: TradingView

Buyers can anticipate a robust bearish efficiency if the selloff gained traction, leading to extra outflows. However, there was nonetheless a big likelihood that ETC whales could scoop up extra ETC. This might probably assist a bullish bounce.

The principle motive why there was a probability of a robust bullish bounce was the truth that investor sentiment witnessed a change of coronary heart. Nevertheless, weighted sentiment nonetheless witnessed an upsurge regardless of the general draw back.

Supply: Santiment

What’s ETC’s remaining stance?

There was little doubt that Ethereum Basic appeared bearish at press time. Nevertheless, the weighted sentiment could possibly be a game-changer so far as expectations had been involved.

If investor sentiment continues rallying, then it means we would see important accumulation. Such an consequence will seemingly cushion ETC from extra draw back and probably favor the bulls.