The price of Ethereum Classic hit the highest level since April 8 as demand for the coin surged. The price of ETC rose to $43, up almost 246% from this year’s low. As a result, the coin’s total market cap increased to over $5.2 billion.
ETC Price Rebound
Ethereum Classic is a major blockchain project that emerged from a hard fork of Ethereum. It is a proof-of-work network where people can build all kinds of applications. The most popular apps in its ecosystem are those in the decentralized finance (DFI) and non-fungible tokens (NFT) industry.
The price of ETC has outperformed most cryptocurrencies over the past few days as investors focus on the ongoing Ethereum merger process. This is a process that will see Ethereum transition from a proof-of-work (PoW) platform to a proof-of-stake (PoS) network.
Ethereum Classic will remain a PoW platform and its developers have opposed the idea of transition. Nevertheless, the price of Ethereum Classic is rising as there is a close relationship between the two platforms.
Historically, many investors buy ETC when they believe Ethereum will rise. This is simply because the price of ETC is less than that of ETH.
The price of Ethereum Classic has also increased due to the ongoing cryptocurrency and stock rally. The market cap of all cryptocurrencies has risen to over $1.2 trillion, down from a year-on-year low of $800 billion.
Meanwhile, US stocks have continued to rise for the past few days. In fact, the Nasdaq 100 Index has moved from a bear market to a bull market. That means the index has jumped more than 20% from its year-over-year low.
The rally was supercharged after relatively weak US consumer inflation data. The data showed that the country’s inflation fell to 8.7% in July as the price of petrol fell.
Ethereum Classic Price Prediction
The daily chart shows that ETC price has been in a strong bullish trend over the past few days. Also, the coin managed to move above the crucial resistance point at $26.03 which was the highest point on May 25. It has managed to move above the 25-day and 50-day moving averages, while the MACD has moved above neutral. point.
Therefore, the coin is likely to rise as the bulls target the next major resistance point at $60. A decline below the $35 support would invalidate the bullish outlook.