- Ethereum Classic whales are back, but momentum is off to a slow start
classic ethereal [ETC] briefly joined the list of top market gainers in the last 24 hours. Many altcoins have found favor with the bulls this week, with some enjoying a bit of an edge as well. This rally was also supported by a sizeable increase in its market capitalization. Now, while that may not seem like a big deal, here’s why it’s quite the opposite.
Read classic ethereal [ETC] price prediction 2023-2024
Consider this: A look at ETC’s market cap revealed that it recently fell to a new 4-month low.
However, it is the subsequent action that is of particular interest. ETC’s market cap rallied as high as $320 million in the last 4 days.
Why is this important to the Ethereum Classic network?
Well, aside from ETC being among the top gainers in the market over the last 24 hours, it underscores the strong interest from investors. The fact that ETC may demand a $300+ million increase in market capitalization is confirmation of the strong incoming demand. Especially considering the short term.
The increase in ETC’s market capitalization was supported by an increase in volume over the same time period. Here, it is worth noting, however, that the volume increase was quite limited. This is a sign that there was some low retail accumulation to support the rally. In other words, the rally was backed by significant whale activity.
Can ETC maintain its prevailing momentum?
Investors should note that the latter advantage is largely correlated across the entire crypto market. In other words, the ability of Ethereum Classic to continue to provide bullish momentum will depend on the market sentiment.
However, ETC’s latest advantage was supported by a significant change in sentiment. Its sentiment-weighted has picked up in the last 3 days, confirming a bullish outlook among investors.
It didn’t have quite as much vigor, compared to its previous sentiment rebound. This could be because most investors are still unsure of the state of the market, especially after the events that caused the recent crash.
Even so, here is what investors should keep in mind about the Ethereum Classic price action. Whale activity has been relatively sparse for most of November. The return of whale activity is therefore a good sign confirming that sentiment is changing favorably.
The price point at which the the whales are shopping The back is also worth mentioning. Ethereum Classic has been trading within a downtrend support for and resistance channel since August. As the pattern continues to extend, the probability of a pattern breakout becomes greater.
The prevailing momentum has been slow. However, if the market continues to rally, there is a chance that it could break below its descending resistance line.