Ethereum Classic is up 18% this week
The network has witnessed an increased hash rate
Ethereum Classic is still under $19 pressure
Ethereum Classic (ETC/USD) has been in the spotlight for the past two days. Despite an intraday loss of 1% on Friday, it was still up 18% on the week. A majority of these gains occurred on January 4, 2023. The gains pushed the cryptocurrency above a crucial descending trendline that ETC has held for some time. But how far can ETC gains go?
Ethereum Classic was tipped for success when Ethereum shifted to the Proof of Stake protocol. Ethereum Classic is itself a Proof of Work protocol. So it was expected that the shift from Ethereum, also known as the Merge, would push PoW miners to Ethereum Classic. Although ETC initially increased the price, it later crashed as speculations subsided.
The latest ETC gains revive hopes for miner activity on Ethereum Classic. While the hash rate fell in December 2022, it began to gain momentum heading into the new year. The hash rate improved from 97.5975 TH/s on December 27 to 111.7497 TH/s on December 30, according to data from CoinWarz. That could point to increased mining activity and ETC transactions driving prices up after the new year. But buyers may need to be careful at current price levels.
Bullish ETC is still under bearish pressure despite breakout
ETC/USD chart by TradingView
A technical outlook shows that momentum for ETC has picked up sharply. The MACD indicator is trying to break above the neutral zone. However, bears are trying to force a correction after ETC hit resistance near USD 19.
What to do with ETC?
Despite breaking the descending trendline, ETC is facing a correction. The price has yet to trade above the previous high.
A break above the $19 resistance is the validation needed to consider further upside. Investors are allowed alone Buy ETC if it recovers above $19 with confirmed bullish momentum. At the current price, ETC is still facing a pullback to the $14 floor.
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