Ethereum Classic (ETC) fell out of favor in the latest setback. At the time of writing, the digital asset was trading at $ 44.24. Because of this, the digital asset extended its weekly loss to almost 30%. Will Digital Currency Group, Inc's (DCG) latest purchase help the underlying asset price rise?
The Digital Currency Group (DCG) led by Barry Silbert has announced plans to purchase a total of $ 50 million worth of shares in Grayscale Ethereum Classic Trust (ETCG). The cryptocurrency-focused venture capital company revealed that it would deploy available cash to fund purchases to be made on the open market, at the discretion of management.
The official press release read:
"The share purchase authorization does not oblige DCG to acquire any specific number of shares in any period and may be extended, extended, modified or interrupted at any time."
In addition, he noted that the actual timing, amount and value of equity investments will depend entirely on several factors, such as levels of available cash, price and current market conditions. The latest development comes two weeks after Digital Currency Group revealed its plans for $ 250 million worth of Grayscale Bitcoin Trust (GBTC) shares when they were trading at a considerably high discount.
In particular, Grayscale's Ethereum Classic Trust is one of the company's most valuable investment trusts. The asset manager has a total value of more than $ 650 million in ETCG as of June 19.
Ethereum Classic (ETC) with no recovery in sight
The crypto market has taken another beating. However, there were times when the asset class attempted an uptrend. After the mid-May crash, most altcoins have been swinging between major support and resistance levels. In the case of Ethereum Classic (ETC), however, the candlestick arrangement has followed a constant downward trajectory that negates any bullish advance. The chart above showed no signs of recovery in sight.
The Awesome Oscillator series (AO) of green bars indicating a possible bullish divergence from its southward price movement stopped after turning red on June 19. Monday's crash only added to their problems. The MACD remained below the midline and has been on the bearish side for almost a month. The Relative Strength Index (RSI) further validated the cryptoasset's move as it not only slipped below the 50 midline, but also reached the oversold region, as of this writing.
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