Ethereum Classic achieves strong bounce back, thanks to hash rate stimulation

1 year ago 86
  • Ethereum Classic’s hash complaint bounced backmost slightly, perchance indicating accrued web activity.
  • ETC’s bullish momentum mightiness beryllium limited, according to its MA indicators.

Every erstwhile successful a while, Ethereum Classic [ETC] registers a ample terms pump that is usually associated with whale activity. The latest specified lawsuit occurred connected 4 January, erstwhile ETC bulls pulled disconnected a astonishment onslaught and pushed the token up by implicit 20% successful 1 day.

Read Ethereum Classic’s [ETC] Price Prediction 2023-2024

This ETC surge meant that the token had outperformed immoderate of the apical cryptocurrencies, including Ethereum [ETH] and Bitcoin [BTC]. A imaginable crushed for this was the pivot successful Ethereum Classic’s hash rate. The second had an undeniable interaction connected ETC’s terms action.

ETC hash rate

Source: Coinwarz

The Ethereum Classic hash complaint declined for astir of December and pivoted towards the end. It whitethorn not person achieved a large recovery, but the insignificant upside does show a displacement successful miner activity. This could beryllium due to the fact that of higher miner profitability, which would bespeak that determination is simply a important surge successful transactions.

The thought that ETC transactions person accrued successful the past fewer days is supported by a surge successful volume. This has been the lawsuit successful the past 2 days, during which Ethereum Classic’s measurement soared to a caller monthly high.

ETC volume

Source: Santiment

Why the upside of ETC mightiness beryllium limited

This beardown measurement surge resulted successful a sizable uptick successful ETC’s terms action, which traded astatine $18.63 astatine the clip of writing. In contrast, it traded arsenic debased arsenic $15.83 during the 4 January trading session. However, this rally mightiness beryllium restricted, particularly present that ETC has travel into interaction with its 50-day moving average.

ETC terms  action

Source: TradingView

ETC’s terms has besides crossed supra the 50% RSI level. So far, the terms has experienced immoderate selling pressure, indicating that profit-taking has intensified aft the rally. In addition, the MFI is present overbought, hence the chances that the rally volition beryllium capped are notably higher.

There are different observations that suggest a higher accidental that the bears volition regain control. For example, the weighted sentiment indicates that galore analysts are inactive leaning toward the bearish side.

ETC weighted sentiment and Binance backing  rate

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The Binance backing complaint confirmed a surge successful derivatives request for ETC. However, this upside was limited, suggesting that the request question mightiness beryllium weak. It besides does not assistance that Ethereum Classic has seen comparatively debased improvement enactment successful the past fewer weeks.

ETC improvement  activity

Source: Santiment

The deficiency of beardown improvement enactment whitethorn neglect to facilitate a beardown favorable sentiment. We tin frankincense reason that ETC’s short-term prospects whitethorn inactive favour the bears. Nevertheless, this mightiness not needfully beryllium the lawsuit if the marketplace sees an unexpected surge successful demand.

Michael is simply a full-time writer astatine AMBCrypto. He has 5 years of acquisition successful concern and forex and much than 2 years arsenic a writer successful the crypto and blockchain segments. Michael's penning astatine AMBCrypto is chiefly focused connected cryptocurrency marketplace quality and method analysis. His interests see motorcycles and exotic cars.

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