Despite ETC hashrate facing 2023 lows, here’s why day traders remain bullish
- Ethereum Classic’s hashrate dropped to its lowest level this year.
- Day traders remained bullish as they intensified accumulation.
At 106.59TH/s, Ethereum Classic’s [ETC] hashrate has hit its lowest point so far this year, data from 2miners.com revealed. Moreover, the chain’s network difficulty at 1.45P also declined to its lowest value since the year began.
Read Ethereum Classic’s [ETC] Price Prediction 2023-24
A network’s hashrate refers to the computing power used by miners to validate transactions and secure the network. On the other hand, network difficulty is a measure of how hard it is to find a block on the blockchain. As more miners join the network and the hashrate increases, the difficulty also increases to maintain a consistent block time.
When a blockchain’s hashrate and network difficulty continue to drop, it suggests that the network is becoming less secure and potentially more vulnerable to attacks. It could also indicate a lack of interest or profitability for miners to continue mining the blockchain.
This might be the case for the ETC network, as data from Messari revealed stagnancy in miners’ revenue from fees paid to process transactions on the blockchain. On a year-to-date basis (YTD), this has oscillated between 0.02% and 0.03%. It rallied to a high of 0.16% on 13 March but declined soon afterward. At press time, this was a mere 0.015%.
ETC holders to see gains?
At press time, ETC traded at $20.61. Moreover, increased buying was spotted during a 12-hour window period. ETC’s price traded close to the upper band of the Bollinger Band indicator, suggesting that day traders have increasingly accumulated the alt.
Further, the asset’s Relative Strength Index (RSI) was 56.99, while its Money Flow Index (MFI) rested at 57.92 When both the RSI and MFI indicators of an asset are up, it suggests strong buying pressure in the market, which can drive higher prices.
Is your portfolio green? Check out the ETC Profit Calculator
ETC’s On-balance volume was also spotted in an uptrend, sitting at 273.532 million at press time. An increasing OBV suggests that the asset volume is increasing over time, indicating that buyers are more active in the market than sellers.
The Directional Movement Index (DMI) confirmed increased buyers’ presence. At press time, the buyers’ strength (green) at 28.20 was solidly above the sellers’ (red) at 15.97. The Average Directional Index (ADX) showed that the buyers’ strength was a rock hard one that sellers might find impossible to revoke in the short term.