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Ethereum Classic Surges Following Hash Rate Drop

Ethereum Classic Surges Following Hash Rate Drop

Ethereum Classic (ETC) has recorded some notable bullish strides over the past few days and has emerged as one of the top-performing cryptocurrencies in the past week. However, some analysts believe that the cryptocurrency could lose its bullish momentum soon, as it is trading in overheated conditions.

Data suggests that ETC is trading in overbought territory, which could cause buyers to run out of steam, creating a technical advantage (in the form of a false breakout) for sellers soon. Also, the cryptocurrency currently exhibits volatile markers, creating room for erratic price swings.

Ethereum Classic’s Price Surge

According to press time data from CoinMarketCap, ETC is trading at $20. The cryptocurrency has traded down by 0.74% in the past 24 hours and 26.25% over the past seven days.

ETC/USD 7-Day Chart on CoinMarketCap

As mentioned earlier, Ethereum Classic also emerged as one of the top-performing cryptocurrencies for the first week of 2022, with a strong surge from a low of $15.58 on January 1 to a six-week peak of $20.77 on January 6, a solid +33.3% spike in a week.

What Is Causing the Ethereum Classic Price to Rise?

Experts believe that the recent surge recorded in ETC comes as a result of a turnaround in Ethereum Classic’s hash rate towards the end of 2023. This hash rate turnaround boosted profitability for miners, which, consequently, boosted the number of transactions facilitated in the network.

Source: CoinWarz

The network’s hash rate recorded a sharp drop throughout December and then a change in trend towards the end of the year. This highlighted an increase in miner activity on the network and a surge in transactions. This increase in network activity naturally caused the price of the cryptocurrency to react positively.

Price Outlooks for ETC

Though showing solid bullish properties, some analysts believe that ETC still has a bearish sentiment overhang. As such, they believe now could be a bad time for investors to stock up on the rising cryptocurrency as they see a sharp retracement coming.

However, cryptocurrency data website Coincodex begs to differ from these sentiments put forth by these analysts, arguing that ETC will likely remain bullish even if technical indicators suggest otherwise.

Coincodex went further to predict that the cryptocurrency will likely trade at $19.76 in the second week of January and $47.48 by early February, or thirty days from January 8.

ETC/USD Daily Chart on TradingView

The $20 mark is a critical support/resistance level for ETC, so a sustained move along this level could defuse the bearish pressure on the cryptocurrency and foster more upward price movements.

ETC Statistics Data

ETC Current Price: $20

ETC Market Cap: $2.78B

ETC Circulating Supply: 138.8M

ETC Total Supply: 210.7M

ETC Market Ranking: #24

Feeling confident? Trade your idea on ETC now

Disclaimer

This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.

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