This week, the most unexpected cryptos have gathered on the charts, including ApeCoin, Origin Protocol and now Ethereum Classic. For ETC, this was the first and most significant, consistent gain since June 2021. In fact, the effect of the May crash was so immense that the altcoin was unable to recover its losses.
Ethereum classic? More like the old
Unlike most cryptocurrencies that recovered in November and hit new all-time highs, Ethereum Classic fell further up the ladder. Green candles have been followed by red candles each time, with ETC consolidating for most of the last few months.
That finally changed yesterday when ETC registered a 21% rise in price in just 24 hours. This was followed by another 10% increase at the time of writing, pushing ETC up 31.75% from less than 28 hours ago.
Ethereum Classic Price Promotion | Source: TradingView – Coin-Crypto
The altcoin, which was trading at $36.5 at the time of writing, was still close to 72.5% off its May high of $133. And it could stay that way as it is the most ETC currently on the market. will be achieved.
The Relative Strength Index, at the time of writing in the overbought zone, never hangs there for long. The only time it has stayed there was when ETC was up 246.56% and 357%.
Given that this 31% rise does not come close, it is clear that the RSI will return soon. That doesn’t necessarily indicate a price drop, as ETC could instead go back to its consolidation nature.
However, it could continue to rise in the future, provided there is some support from investors. The same has sadly been fading in recent months.
ETC addresses prone to in-chain transactions are currently at 29k. Although two peaks were observed in November and January, this was not a response to a price rise or fall.
Ethereum Classic Active Addresses | Source: Coinmetrics – Coin-Crypto
Moreover, it is not surprising that none of the investors are particularly enthusiastic about the altcoin, as the market value of the asset is drowning.
The ETC, which has hovered below the neutral 1.0 level since December, stood at 0.7 at the time of writing. To regain investor confidence, it needs to get back above 1.0 soon.
Ethereum Classic MVRV Ratio | Source: Coinmetrics – Coin-Crypto