Ethereum Classic (ETC), a decentralized, open source, and blockchain-based cryptocurrency, could soon lose its current momentum that allowed it to become one of the top-performing crypto assets over the past week.
a quick revision on some data points because the digital asset reveals that it is currently trading in an overbought position, which could cause buyers to be “exhausted” and unable to sustain a further rally, giving bears a technical advantage once again.
Additionally, the altcoin’s Bollinger Bands indicate that it is extremely volatile right now, making it susceptible to significant price swings that could happen in the blink of an eye. This makes Ethereum Classic a riskier asset to trade or hold.
Ethereum Classic: A quick look at the impressive run
According to the last monitoring of Coingeckoat the time of writing, ETC was changing hands at $19.82.
Although the crypto has declined by 2% in the last 24 hours, it is still enjoying an increase of almost 30% from its value seven days ago. In addition, biweekly, the digital token registered an increase of 20.3%.
Over the past few days, Ethereum Classic was among the few cryptocurrencies that managed to post double-digit gains in the previous week, led by Solana, which surged by a staggering 35%.
As for the reason, some experts believe that the fundamental change in the ETC hash rate towards the end of 2022 paved the way for mining profitability which, in turn, increased number of transactions processed by the asset network.
In fact, for the past two days, the Ethereum Classic transaction count has increased and reached a new monthly high. Following this, ETC posted a 12% increase in its trading price, indicating that the increase in volume triggered an upward movement in the altcoin’s value.
Total ETC Market Cap at $2.7 Billion on Weekend Chart | Chart: TradingView.com
Preparing for potential price drawbacks
Despite being “in the green” for over a week, Ethereum Classic is still haunted by negative weighted sentiment denoting bad convictions held by investors for the digital token.
Therefore, holders and potential buyers are advised to exercise caution, as non-positive sentiment is often followed by a price pullback.
Coincodex, however, seems to disagree with this thesis since its forecasts for ETC remains bullish despite technical indicators saying otherwise.
In fact, the online crypto data provider predicts that the digital currency will change hands at $19.76 within five days and make another massive rise in the next 30 days to trade at $47.48.
-Featured image: Invezz
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