The hash rate enables Ethereum Classic to recover strongly
The hash rate of Ethereum Classic increased marginally, perhaps signalling greater network activity.
The MA indications suggest that ETC’s upward momentum might be limited. Occasionally, Ethereum Classic [ETC] has a huge price increase that is often correlated with whale behaviour. The most recent such occurrence happened on January 4, when ETC bulls executed a surprise assault and pushed the token’s price up by nearly 20% in a single day.
This ETC increase indicated that the token has surpassed some of the leading cryptocurrencies, such as Ethereum [ETH] and Bitcoin [BTC]. A possible cause was the change in Ethereum Classic’s hash rate. The latter had an unmistakable effect on the price movement of ETC.
The hash rate of Ethereum Classic decreased throughout most of December and then reversed direction towards the month’s conclusion. It may not have reached a significant comeback, but the slight increase indicates a change in mining activity. This might be due to increased miner profitability, which would suggest a substantial increase in transactions.
The notion that ETC transactions have grown in recent days is corroborated by a volume increase. In the previous two days, the volume of Ethereum Classic reached a new monthly peak.
At the time of writing, ETC was trading at $18.63, after a substantial price increase resulting from this volume increase. In comparison, it reached a low of $15.83 on January 4 during trading. However, given that ETC is now trading at its 50-day moving average, this gain may be capped.
The price of ETC has also surpassed the 50% RSI barrier. So far, the price has seen some selling pressure, suggesting that profit-taking following the gain has escalated. In addition, the MFI is currently overbought, increasing the likelihood that the surge will be limited.
Other findings indicate a greater likelihood that the bears will retake dominance. For instance, the weighted sentiment implies that the majority of analysts remain pessimistic.
The financing rate on Binance revealed an increase in derivatives demand for ETC. However, this improvement was modest, indicating that the demand wave may be feeble. It also does not help that Ethereum Classic development activity has been very minimal in recent weeks.