Ethereum Classic whales are back, but momentum is slowly picking up
Ethereum classic [ETC] briefly joined the list of the market’s top risers in the last 24 hours. Many altcoins have found favor with the bulls this week, and quite a few are also enjoying a bit of an upside. This rally was also supported by a significant increase in market capitalization. While that may not seem very important, here’s why it’s just the opposite.
Read Ethereum Classic [ETC] Price forecast 2023-2024
Consider This – A look at ETC’s market cap revealed that it recently dropped to a new 4-month low.
However, it is the subsequent action that is of particular importance. ETC’s market cap has surged by as much as $320 million in the past 4 days.
Why is this important for the Ethereum Classic network?
Aside from the fact that ETC has been among the market’s biggest gainers over the past 24 hours, it underlines the strong investor interest. The fact that ETC can command a market cap of over $300 million is confirmation of strong inbound demand. Especially given the short time frame.
The rise in ETC’s market capitalization was supported by an increase in volume over the same period. However, it is worth noting here that the increase in volume was quite limited. This is a sign that there was little retail accumulation to support the rally. In other words, the meeting was supported by significant whale activity.
Can ETC maintain prevailing momentum?
Investors should note that the latter benefit is largely correlated in the crypto market. In other words, Ethereum Classic’s ability to continue to deliver bullish momentum will depend on overall market sentiment.
Nevertheless, ETC’s latest upside has been supported by a significant shift in sentiment. Weighted sentiment has rebounded over the past 3 days, confirming the optimistic outlook among investors.
It didn’t have as much power compared to its previous sentiment bounce. This may be because most investors are still unsure about the state of the market, especially after the events that triggered the recent crash.
Still, here’s what investors should note about Ethereum Classic’s price action. Whale activity has been relatively absent for most of November. So the return of whaling activity is a good sign, confirming that sentiment is shifting favorably.
The price at which the whales buy back is also worth noting. Ethereum Classic has been trading within a downside support and resistance channel since August. As the pattern continues to expand, the likelihood of a pattern break is greater.
The prevailing momentum is sluggish. However, if the market continues to recover, there is a chance that it will break below the falling resistance line.
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