Ethereum Classic is nearing a support area and The Daily Breakdown takes a closer look. Elsewhere, Netflix complete its 10-for-1 stock split.
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Crypto Corner
We’re continuing our talk about the ins and outs of the crypto market, helping investors to get more familiar with the 100+ cryptoassets offered by eToro. Some of these names may be familiar to investors today, where we’ll discuss Aave and Ethereum Classic.
Aave (AAVE): Currently trading near $172 with a market cap of roughly $2.6 billion
Aave is a decentralized, open-source lending and borrowing protocol built on Ethereum. Originally launched as ETHLend in 2017 and rebranded in 2018, Aave allows users to lend or borrow digital assets without intermediaries, using liquidity pools managed by smart contracts. Lenders earn interest while borrowers provide collateral, ensuring trustless transactions.
The AAVE token serves as both a governance and utility asset — used for voting, collateral, and transaction discounts on the network. Aave’s community governs upgrades and integrations through decentralized proposals, with over 160,000 active wallets participating in a system that has processed billions in loans.
Ethereum Classic (ETC): Trading near $14.50 with a market cap of roughly $2.2 billion
Ethereum Classic emerged in 2016 after a fork of the original Ethereum blockchain, preserving the pre-fork network and its principle of immutability — the idea that “code is law.” It remains a decentralized, open-source platform for executing smart contracts and decentralized applications, using proof-of-work validation and rewarding miners with ETC. While it lacks the scale and DeFi ecosystem of Ethereum, Ethereum Classic continues to prioritize stability, decentralization, and censorship resistance through a global, community-driven network with no central authority or profit-sharing structure.
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The Setup — ETC
When we look at the technical setup for Ethereum Classic, there’s good news and bad news. The bad news is, ETC has not been a strong long-term performer, as it’s trading back near the same price it was in mid-2022. On the plus side, it’s trading into what’s generally been a supportive zone between $12 and $15.
Bulls are looking for this zone to once again hold as support, potentially pushing ETC back to the upside. Even as recently as this summer, Ethereum Classic was trading above $25. Should support hold, a bounce could take place. However, a break of support could usher in more downside volatility.
What Wall Street’s Watching
Netflix slipped almost 1% on Monday and remains about 18% off its recent record high, despite yesterday marking the stock’s first trading session after its fresh 10-for-1 stock split went into effect. The move makes shares far more accessible without changing the company’s value (as shares now trade for about $110 a share vs. $1,100).
Shares of Home Depot are moving lower this morning, down about 4% after the firm reported earnings of $3.74 a share vs. expectations of $3.84 a share, but beat on revenue expectations ($41.4 billion vs. estimates of $41.1 billion). It was the company’s third straight earnings miss and management was forced to cut its full-year outlook, while also noting that consumers remain hesitant to start large home projects. Dig into the fundamentals for HD.
QQQ
The QQQ ETF has now fallen in four of the last five trading sessions and continues to hang near recent support around $600. Bulls are keeping a close eye on the QQQ and tech overall with Nvidia’s earnings in the spotlight later this week. Should the group continue lower, the QQQ ETF could be looking at a larger correction. Check out the charts for QQQ.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.