Ethereum Classic is seeing a sharp drop in market cap, indicating increased selling pressure. ETC investor sentiment is turning and favoring the coin at the time of writing. Ethereum Classic [ETC] retested its short-term descending resistance line last week. The price delivered a sideways performance rather than a bearish pullback or a bullish breakout. Fast forward to the present, and at press time, ETC showed signs of a price slide.
ETC has been trading along the resistance line for the past few days, and recent observations point to a possible bearish outcome. One of those observations was the market cap exit. ETC’s market cap has fallen approximately $82 million in the last 24 hours of writing.
This was the largest daily drop in the market cap the cryptocurrency has seen in the last seven days. Moreover, the bearish clock was one of many indicators of Ethereum Classic’s bearish launch. The social domain metric also significantly dropped in the last 24 hours. This indicates that investors’ attention has shifted to other areas.
Binance’s funding rate has also plummeted significantly, especially over the past two days. This confirmed that demand in the derivatives market was also falling.
Should investors expect a deeper ETC crash?
The drop-in market cap and other metrics indicated a bearish trend. While this looks like the start of a bearish pullback, some factors supported ETC, while others opposed it. The probability of a bearish outcome was the ETC price action. ETC has been down about 5% over the past two days. While this might seem like a small pullback, the main takeaway was that it threatened to push the price back into the tight support and resistance area.
Investors can expect a strong bearish performance as the sell-off gathers momentum and leads to more exits. On the other hand, there was still a significant possibility that ETC whales could ingest more ETC. This could support a bullish leg. The main reason a strong uptrend was likely was that investor sentiment saw a change of heart. However, the weighted sentiment was still up despite the lower overall move.
What’s ETC’s final stance?
There was no doubt that Ethereum Classic was looking bearish at press time. However, mood weight could be a game changer regarding expectations. If investor sentiment continues to rise, we could see significant accumulation. A result likely to protect ETC from further declines and support the bulls.