Ethereum Classic (ETC), the decentralized, open-source and blockchain-based cryptocurrency, may lose the current momentum that allowed it to become one of the best-performing crypto assets in the past week.
A quick review on several data points for the digital asset said that it is currently trading in an overbought position that could cause buyers to be “tired” and unable to sustain further rallies, resulting in technical gains for bears again.
In addition, Bollinger Bands altcoins show that they are very volatile right now, making them susceptible to significant price changes that can happen with just a blink of an eye. This makes Ethereum Classic a riskier asset to trade or hold.
Image: Coinpedia
Ethereum Classic: A Quick Look At Its Impressive Run
According to the latest tracking from Coingeckoat the time of writing, ETC is changing hands at $19.82.
Although the crypto has dropped 2% in the last 24 hours, it still enjoys a nearly 30% jump from its value seven days ago. In addition, every two weeks, the digital token increases by 20.3%.
Over the past few days, Ethereum Classic was one of the few cryptocurrencies that managed to double its previous week’s gains led by Solana which rose 35%.
For this reason, some experts believe that a significant change in the hash rate of ETC at the end of 2022 paves the way for the profit of miners, which is the next, increase the number of transactions processed by the asset network.
In fact, during the last two days, the number of Ethereum Classic transactions increased and reached a new monthly high. After that, ETC recorded a 12% increase in trading price, indicating that the spike in volume triggered an upward movement for the value of the altcoin.
ETC total market cap at $2.7 billion on the weekend chart | Chart: TradingView.com
Prepare For Possible Price Weaknesses
Despite being “in the green” for more than a week now, Ethereum Classic is still haunted by the negative weight sentiment that shows the bad faith that investors have for the digital token.
Owners and prospective buyers are advised to be cautious as non-positive sentiment is usually followed by a price pullback.
Coincodex, however, seems to disagree with this thesis as a forecast for ETC remains bullish although technical indicators say otherwise.
In fact, an online crypto data provider predicts the digital coin will change hands at $19.76 five days from now and will make another massive jump in the next 30 days to trade at $47.48.
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