Should you buy Ethereum Classic as its recovery accelerates?
Ethereum Classic price soared to the highest level since April 8th as demand for the coin jumped. ETC price rose to a high of $43, which was about 246% above the lowest level this year. As a result, the total market cap of the coin jumped to over $5.2 billion.
ETC price rebounds
Ethereum Classic is a leading blockchain project that emerged from a hard fork of Ethereum. It is a proof-of-work network where people can build all types of applications. The most popular apps in its ecosystem are in the Decentralized Finance (DeFi) and non-fungible token (NFT) industry.
ETC price has outperformed most cryptocurrencies in the past few days as investors focus on the ongoing Ethereum merge process. This is a process that will see Ethereum transition from a proof-of-work (PoW) platform to a proof-of-stake (PoS) network.
Ethereum Classic will remain being a PoW platform and its developers have opposed the idea of transitioning. Still, the price of Ethereum Classic price is rising because of the close relationship the two platforms have.
Historically, many investors tend to buy ETC when they feel that Ethereum will rise. This is simply because ETC has a lower price than ETH.
Ethereum Classic price has also rallied because of the ongoing cryptocurrency and stocks rebound. The market cap of all cryptocurrencies has jumped to over $1.2 trillion, up from the year-to-date low of less than $800 billion.
Meanwhile, American stocks have continued rising in the past few days. Indeed, the Nasdaq 100 index has moved from the bear market and entered a bull one. This means that the index has jumped by more than 20% from its year-to-date low.
The rally was supercharged after the relatively weak American consumer inflation data. The numbers showed that the country’s inflation dropped to 8.7% in July as the price of gasoline dropped.
Ethereum Classic price prediction
The daily chart shows that ETC price has been in a strong bullish trend in the past few days. Along the way, the coin managed to move above the important resistance point at $26.03, which was the highest point on May 25. It has managed to move above the 25-day and 50-day moving averages while the MACD has moved above the neutral point.
Therefore, the coin will likely continue rising as bulls target the next key resistance point at $60. A drop below the support at $35 will invalidate the bullish view.