The price of Ethereum Classic rose to the highest level since April 8 as the demand for the coin jumped. ETC price surged to a high of $43, which is about 246% more than this year’s low. As a result, the total market capitalization of the coin jumped to more than $5.2 billion.
ETC price retracement
Ethereum Classic is a pioneering blockchain project that originated from a hard fork of Ethereum. It is a proof-of-work network where people can create all kinds of applications. The most popular applications in its ecosystem are in decentralized finance (DeFi) and non-fungible tokens (NFT).
The price of ETC has outperformed most cryptocurrencies in the past few days as investors focus on the ongoing Ethereum consolidation process. This is a process that will see Ethereum transition from a Proof of Work (PoW) platform to a PoS network.
Ethereum Classic will remain a PoW platform and its developers have opposed the idea of moving. The price of Ethereum Classic continues to rise due to the close relationship between the two systems.
Historically, many investors tend to buy ETC when they feel that Ethereum will rise. This is simply because the price of ETC is lower than ETH.
The price of Ethereum Classic also rose due to the continuation of the cryptocurrency and the recovery of stocks. The market capitalization of all cryptocurrencies has jumped to over $1.2 trillion, up from a year-to-date low of less than $800 billion.
Meanwhile, US stocks have continued to rise in the past few days. In fact, the Nasdaq 100 has moved out of a bear market and entered a bull market. This means that the index has jumped more than 20% from its year-to-date low.
The rally was strong after the relatively weak US consumer inflation data. Figures showed that inflation in the country fell to 8.7% in July as the price of gasoline fell.
Ethereum Classic Price Prediction
The daily chart shows that the price of ETC has been in a strong bullish trend for the past few days. Along the way, the coin managed to move above the important resistance point at $26.03, which was the highest point on May 25. It was able to move above the 25-day and 50-day moving averages, while the MACD moved above the neutral one point.
Therefore, the coin is likely to continue rising as the bulls target the next major resistance point at $60. A dip below the $35 support level will invalidate the upside.