Ethereum Classic price has gone parabolic in the past few days as investors buy the dip. The ETC token rose to a high of $21.68, which was the highest point since June 8th of this year. This price is about 73% above the lowest point this year. Other cryptocurrencies that have gone parabolic in the past few days as Lido DAO, Polygon, and Theta Fuel.
Ethereum Classic price is surging because of its close correlation with Ethereum, the second-biggest cryptocurrency in the world. Ethereum has staged a strong rally and is now trading above $1,400. This price is substantially higher than the year-to-date low of less than $800.
It is rising as investors wait for the upcoming merge between the current version and the Beacon Chain. Historically, ETC and ETH have a close correlation with one another. ETC tends to rise when ETH rises because it has a significantly lower price than ETH.
The ETC price is also rising because of the ongoing fear of missing out (FOMO) and the fact that other coins have done well in the past few days. Bitcoin has gained above $21,000 while the total market cap of all cryptocurrencies is approaching the $1 trillion mark.
Still, from a fundamental perspective, there are concerns about Ethereum Classic’s small ecosystem. Like other traditional smart contract platforms like EOS, developers have not embraced Ethereum Classic well. There are only a handful of apps created using its technology.
The four-hour chart shows that the ETC price has been surging in the past few days. This rally was in line with my previous ETC forecast. It has managed to move below this month’s low of $13.31 to the current $21.68. The coin rose above the important resistance point at $17.92, which was the highest point on June 26th of this year.
It has also risen above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has jumped to the overbought level. Therefore, while the overall outlook for Ethereum Classic price is bullish, I expect a pullback as some bulls start to exit their trades. If this happens, the key level to watch is at $17.92, which is about 18% below this price. A move above $22 will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 05:04