- Digital Currency Group will purchase shares of the Grayscale Ethereum Classic trust worth $50 million
- Digital Currency Group is the parent company of Grayscale Investments
- The purchase will not be immediate and will depend on numerous factors
- Ethereum Classic’s value has been hit hard by the ongoing crypto market pullback led by Bitcoin dropping below $30k
The parent company of Grayscale, Digital Currency Group, has announced that it plans to utilize $50 million to purchase shares of the Grayscale Ethereum Classic Trust (ETCG). Digital Currency Group will use cash on hand to fund the purchase and will do so in the open market.
Furthermore, the team at DCG went on to issue a disclaimer that the intended purchase does not obligate Digital Currency Group to buy ‘any specific number of shares in any period, and may be expanded, extended, modified, or discontinued at any time’. Additionally, the intended purchase will depend on numerous factors including cash available, price of the shares and the market conditions at the time.
Ethereum Classic Drops to $32.21 Amidst Bitcoin Dropping Below $30k
A quick glance at the daily ETC/USDT chart below reveals that Ethereum Classic (ETC) is headed to bearish territory with the 200-day moving average (green) providing an area of support around the $29 to $28 prize zone.
Also from the chart, it can be observed that the daily MACD confirms the selling pressure evident with Ethereum Classic. Trade volume is also in the red with the MACD’s histogram further confirming the increased level of selling.
However, the daily MFI and RSI are in oversold territory thus hinting of a probable relief rally at the aforementioned support zone that can be found at the 200-day moving average.
As with all analyses of altcoins, Ethereum Classic’s fate in the markets solely rests on Bitcoin. Consequently, a dip by Bitcoin below the $28k support could result in Ethereum Classic losing the 200-day moving average as support.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.