Ethereum Classic is bouncing off the bottom of its descending channel and might be due for a move back to the top soon. Bulls appear to be gaining more energy after ETC was included in the Coinbase listing and index fund.
RSI is moving up after previously hitting oversold levels, indicating that buying pressure is returning. Stochastic is also moving up to indicate that bullish momentum is picking up and that Ethereum Classic could follow suit.
However, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is still to the downside or that the selloff is more likely to resume than to reverse. With that, nearby resistance levels are likely to keep gains in check. Price could hit a roadblock at the mid-channel area of interest, which happens to line up with the 100 SMA dynamic inflection point.
The Coinbase Index Fund was launched last June, enabling accredited investors willing to allocate a minimum of $250,000 to up to $20 million to trade this fund. The assets included in the fund are weighted by market capitalization and has just recently been rebalanced to include Ethereum Classic.
On top of that, management also decided to reduce their management fee in order to encourage more flow of investments, announcing:
We’re pleased to announce that we are reducing the annual management fee for Coinbase Index Fund from 2% to 1% for all new and existing investors.
Note that the Coinbase announcement to list ETC was also followed by similar moves from Robinhood and Bittrex, bringing more liquidity and activity to this particular altcoin. With that, it could be setting its sights on upside targets from here, especially if the mood improves in the industry overall.
So far, most cryptocurrencies are still on shaky footing while investors wait for positive developments and try to shake off negative commentary.
Image courtesy of TradingView
