Ethereum Classic (ETC) is a blockchain-based open source distributed computing platform featuring smart contract functionality. It was officially launched in July 2016 as the Ethereum hard fork.
ETC has seen a substantial price increase in the last week, with a 55.52% increase in seven days and a 20.59% increase in 24 hours.
According to Bybt data, despite the sharp rise in ETC prices, Grayscale, one of the largest digital asset management companies in the United States, has slightly reduced its ETC holdings. Grayscale reduced its ETC holdings by 7,153 in 7 days. At press time, Grayscale has a total of 12.43 million FTEs, worth $ 222.7 million.
Ethereum Classic (ETC) Price Analysis
Source: ETC / USD Daily via TradingView
Judging from the daily chart, ETC has successfully broken past the $ 17.00 resistance level in mid-February this year.
As the cryptocurrency market exploded in 2018, numerous investors have accumulated their holdings in the initial period. As shown in the figure above, $ 21.00 will be a relatively important resistance level with a large anticipated trading volume around this level compared to the previous two-day trading volume. If this resistance level is successfully broken, the bulls will watch the next resistance level of $ 25,185 for ETC.
But currently, it appears that the bulls lack sufficient momentum to propel ETC / USD above $ 21.00 today. If a large number of sell orders occur, the resistance level of $ 17.00 will become a support level for ETC.
Source: ETC / USD 4 hours via TradingView
From the 4-hour chart, despite some corrections, ETC quickly recovered its uptrend. However, the bigger question will be whether ETC’s uptrend can be sustained in the long term.
ETC has experienced several price fluctuations since early 2021. Although the MACD indicator is bullish, the RSI stochastic indicator has entered the overbought zone of 80, and a bearish crossover is very likely to form in the near term.
However, there is also a short-term correction phase. If a long green candle closes today and is accompanied by higher trading volume than yesterday, ETC is likely to break the $ 21.00 resistance level soon.
Conversely, if there is a decline in trading volume, ETC / USD is likely to consolidate between $ 18.00 and $ 21.00. So buyers will gain momentum to break the $ 21.00 pressure level and start a new round of earnings for ETC. If the bears are stronger and push the price below the opening price, then ETC / USD will test the $ 17.00 support level.
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