This week has seen the most unexpected cryptos rallying on the charts, including the likes of ApeCoin, Origin Protocol, and now Ethereum Classic. For ETC, this has been the first and most significant, consistent hike since June 2021. In fact, the effect of May’s crash was so immense that the altcoin failed to recover its losses.
Ethereum Classic? More like ancient
Unlike most cryptocurrencies that recovered and hit new all-time highs in November, Ethereum Classic fell further down the ladder. Green candles have been followed by red ones every single time, with ETC spending most of the last few months consolidating.
That finally changed yesterday when in a matter of just 24 hours, ETC registered a 21% increase in price. This was followed by another 10% hike at press time, pushing ETC up by 31.75% from where it was less than 28 hours ago.
Ethereum Classic price action | Source: TradingView – AMBCrypto
Trading at $36.5 at press time, the altcoin was still almost 72.5% away from its May high of $133. And, it might stay that way since this is the most ETC will be gaining at the moment.
The Relative Strength Index, in the overbought zone at the time of writing, never lingers in that area for a long time. The only time it has remained there was when ETC was rallying by 246.56% and 357%.
Given that this 31% hike is nowhere close to it, it’s evident that the RSI will be turning back soon. Now, that doesn’t necessarily indicate a price drop as ETC could just go back to its nature of consolidating instead.
However, it could sustain a rise going forward provided there is some support from investors. The same, alas, has been fading away over the last few months.
ETC addresses prone to making transactions on the chain currently stand at 29k. Although two peaks were observed in November and January, it wasn’t in response to a rise or a fall in price.
Ethereum Classic active addresses | Source: Coinmetrics – AMBCrypto
Furthermore, it’s not surprising that none of the investors are particularly enthusiastic about the altcoin since the asset’s market value has been drowning.
Stuck under the neutral 1.0-level since December, ETC was at 0.7 at press time. In order to gain back investors’ confidence, it needs to go back above 1.0 soon.
Ethereum Classic MVRV ratio | Source: Coinmetrics – AMBCrypto
