Ethereum Classic is an altcoin that has seen tremendous growth this year. It has ridden the bull along with other top coins. And it doesn’t look like the coin is stopping yet. The coin was trading for as low as $7 at the beginning of 2021. But with April came an uptrend in the price of the coin that would continue on to May.
On May 6th, Ethereum Classic hit a new all-time high. The coin was trading at a whopping $175 per coin on May 3rd. Before crashing back down into the $120 range. The previous all-time high for Ethereum Classic was a little over $48. This was during the bull market of 2017 that eventually ended in 2018.
Cheaper Version Of Ethereum
Ethereum Classic has always been known to be a cheaper option on the Ethereum play. While Ethereum might still be too high for some people, Ethereum Classic presents a perfect opportunity to get into the Ethereum network. This is one of the reasons why the price surges.
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New investors are usually looking to put their money in assets that they do not feel they have missed the boat on. And Ethereum Classic is one such asset.
Ethereum Classic is Ethereum before the hard fork. Both ETC and ETH still continue to use the proof of work mechanism. But soon, Ethereum plans to move to proof of stake, leaving ETC behind using the proof of work mechanism.
It is still left to be seen if ETC will follow in the footsteps of ETH and switch to proof of stake.
The switch to proof of stake will mean that transactions will be faster and more efficient. Also, this gives more scalability to the Ethereum network.
There is a standing conflict that Ethereum deviated from what blockchain technology was created to do, prevent manipulations in the market by people. Although at the time, it seemed the way to save Ethereum’s reputation was to perform the hard fork. Obviously, that was the right move given current situations.
ETC supporters believe that they continue to stay true to the original notion and mission of blockchain technology.
The present growth of Ethereum Classic can also be attributed to the improvements in the ETH network. ETH 2.0 has investors excited about the new possibilities in the network. And Ethereum Classic is a part of that ecosystem.
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The price of ETC has been on a downtrend in recent months along with other coins. The coin lost over 50% of its all-time high value in the crash. It now looks to be posting a steady recovery post-crash.
Ethereum Classic Market Indicators
Moving averages for ETC are negative over the short term but remain positive over the long term. Five-day moving averages are down 20%. But the 100-day moving average is up by a wide margin, holding at 373.10% in the long term.
The market indicators for Ethereum Classic are currently showing a buy pressure.
Coin price is up despite low trading momentum in the market. This could be attributed to upward movement in the price of Ethereum.
This price increase puts ETC firmly upwards on the highest market recoveries.
ETC surges amid market recovery | Source: ETCUSD on TradingView.com
Moving averages for the month put the asset in the strong buy pressure region. Accounting for the increase in the price of the coin recently.
Although hourly moving averages are now moving into strong sell indicators. Nothing out of the ordinary. Sell indicators are usually expected when coins post-high percentage recoveries in short periods of time.
Ethereum Classic is currently holding at a price of $58.
Featured image from The Economic Times, chart from TradingView.com