Ethereum Classic [ETC] investors should be cautious in 2023, here’s why

• Market indicators revealed that Ethereum Classic’s price might register a decline soon.
• In fact, the alt’s metrics looked in favor of the bears. 

Ethereum Classic [ETC] recently disclosed its notable achievements in 2022 and also highlighted a few of its plans for the ongoing year. In this regard, Ethereum Classic DAO’s tweet elaborated on the launch of ETC Swap in 2022 and the capabilities that it brought to the table.

Following that, ETC DAO stated that the year 2023 will see their organization deploy more foundational protocols on Ethereum Classic.

gm all! 👋!
Web3 on #EthereumClassic 🧵

2023 will witness our outfit deploy more foundational protocols on #ETC as we continue our mission of connecting $ETC to the greater #Web3 ecosystem.

You can follow our progress at:https://t.co/CAlYLiLUcN 👨‍💻 pic.twitter.com/WYds8O22NI

— Ethereum Classic DAO (@EthClassicDAO) January 25, 2023

Read Ethereum Classic [ETC] Price Prediction 2023-24

In 2023, Ethereum Classic DAO will focus on professional partnerships and accredited funding rounds to assure the Web3 stacks on Ethereum Classic are properly deployed and marketed to the masses.

Furthermore, ETC will also be incorporating a global ecosystem token into future deployed protocols.

The new ECO token will be airdropped to addresses that participate in ETC Swap. Interestingly, ETC’s hashrate also remained consistent over the last month, which looked good for ETC as it is the largest PoW chain. 

Short-term concerns prevail

Though the long-term plans of ETC looked optimistic, things on the ground were not in ETC’s best interest. The altcoin registered a decline in its price over the last 24 hours, and at press time, it was trading at $21.69 with a market capitalization of more than $3 billion.

ETC’s daily chart also pointed out that the market indicators suggested a further price decline in the coming days.

The MACD displayed a bearish crossover, which is a massive bearish signal. Furthermore, the Relative Strength Index (RSI) registered a downtick. ETC’s Money Flow Index (MFI) also followed the same route and went down, further increasing the chances of a continued downtrend.

Source: TradingView

How much are 1,10,100 ETCs worth today

Can the metrics help?

Most of the on-chain metrics also told a similar story, as they looked bearish. ETC’s volume registered a decline over the last few days, which is not a positive indicator.

Positive sentiments around ETC went down slightly, reflecting investors’ less confidence in the altcoin. ETC also failed to be in demand in the derivatives market as its Binance funding rate decreased.

Nonetheless, ETC’s development activity has increased in the last week, reflecting the developers’ increased efforts to improve the network.

Source: Santiment