Ethereum
The Ethereum Classic spectacular rally has faded as some traders start taking profits. While the ETC price has surged by more than 30% in the past seven days, the coin has declined by more than 5% in the past 24 hours. It is in the same range it has been in the past few days, bringing its total market capitalization to more than $6.4 billion. It is the 18th largest cryptocurrency project in the world.
What happened: Ethereum Classic has a close correlation to Ethereum (ETH). This is simply because of their close history and the significant gap between the two prices. While ETC is trading at $55, ETH is trading at almost $2,400. As a result, many retail traders see ETC as a good proxy for Ethereum.
As such, while Ethereum has risen by more than 15% in the past seven days, Ethereum Classic has risen by more than 30% in the same period. Ethereum has risen because of the relatively higher demand for the currency rises. This has happened as the number of Ethereum addresses managed to cross those of Bitcoin.
Ethereum registered more than 750k active addresses on Friday, 50k more than those of Bitcoin addresses. At the same time, Bitcoin’s number of active addresses has fallen by about 38%. Ethereum is also expected to see more adaption as it shifts from a proof-of-work to a proof-of-stake consensus protocol. Still, fundamentally, Ethereum Classic faces a big challenge since its user adaption has been relatively slow.
The daily chart shows that the ETC price has risen sharply from its lowest level last week. Recently, though, the coin has found some resistance and its price is at the same range it has been in the past few days. The price is slightly below the first support of the Andrews pitchfork tool. It is also below the 61.8% Fibonacci retracement level. Further, the price is along the 25-day and 50-day exponential moving averages (EMA).
It also seems to be forming a bullish flag and inverse head and shoulders pattern. Therefore, the pair will likely keep rising as bulls target the first support of Andrews Pitchfork indicator.
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