It’s getting rougher out there in the crypto industry – Joseph Lubin’s Consensys Ethereum accelerator is not ruling out layoffs, while ETCDev is shuttering its business and closing down development on Ethereum Classic.
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ETCDev is shuttering its business
CEO Igor Artmanov abruptly closed the business. “This was partially due to the market crash, combined with a cash crunch in the company,” he said in a statement. In a moment we’ll take a look at the Ethereum Classic chart to see what the news means to ETC fans. With that said, we’re sorry to see ETCDev go – they’re a good bunch of people, and we wish them well. But that’s not the only bearish sign as we move into December.
Consensys Ethereum accelerator is not ruling out layoffs
Ethereum co-founder Jo Lubin will AXE underperforming projects from the Consensys stable. That could be more bad news for journalism startup Civil, which secured $2.5M from the company – and then failed to raise its soft cap in a crowdfunding effort last month.
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Steemit Slashes 70% of Workforce
Steemit – which seems to have been moving along relatively smoothly – has slashed 70% of its workforce. They sighted the pace of adoption failing to keep up with expenses for this.
As crypto matures, we are going to start seeing some projects fail. In fact, the traditional rate of failure for startups, in general, is about 90%. We see no reason why crypto should be different – so it’s natural, and even healthy, for the ecosystem. It gives successful companies more room to grow and prunes the unhealthy branches.
Ethereum Classic Technical Overview
Now let’s see how the fundamental news impacted ETC’s price action versus the US dollar, Bitcoin, and Ethereum respectively. It’s worth first mentioning that both Bitcoin and Ethereum lost over 7 percent of their respective value versus the U.S. dollar on Monday. Meanwhile, USD itself wasn’t having a great day either. The DXY, a U.S. dollar index that tracks the value of the greenback versus a basket of fiat currencies, saw minor losses as well. Despite all this, the losses in ETC were far more significant.
Looking at ETC/USD’s 4-hour chart, the pair has crossed below the Ichimoku cloud, forming a Double Top Bearish chart pattern, testing the key pivot level and the pattern’s neckline at $4.53. This is after the dramatic drops that started on November 18th.
Versus Bitcoin, ETC aborted its newly developed bullish momentum. On the first couple of December days, ETC/BTC managed to break above the 4-hour Ichimoku cloud and confirm a Saucer Bottom bullish reversal chart pattern which could have been great news for ETC fans. But the fundamentals news has cast a cloud on this positive technical formation. An interesting observation is the future Ichimoku cloud, which appears to be bullish, indicating that this pullback may be temporary.
Finally, versus Ethereum (ETH), the chart pattern is almost identical to that of ETC/BTC, with dramatic drops supported by the upper band of the Ichimoku cloud. With that, the price action in the next few days could be critical to setting the next trend for Ethereum Classic’s value.
Now I’d love to hear your thoughts about Ethereum Classic. Do you think there is still hope for its survival? Let me know in the comments, and subscribe to get more updates.
Don’t forget to complete your risk management due-diligence before developing your investment strategy.