Ethereum Classic (ETC/USD) breaks above the falling trendline, but be careful

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  • 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.

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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

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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.

Where to buy ETC

eToro

eToro offers a wide variety of cryptos, such as Bitcoin, XRP and others, in addition to crypto/fiat and crypto/crypto pairs. eToro users can connect, learn from and copy or be copied by other users.

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Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited for more experienced investors and it offers a large number of cryptocurrencies to choose from, which is over 600. Binance is also known for its low trading fees and a multitude of trading options that its users can take advantage of, such as; peer-to-peer trading, margin trading and spot trading.

Buy ETC with Binance today