Ethereum Classic is making a strong rebound thanks to the hashrate increase

  • The hash rate of Ethereum Classic rebounded slightly, which could indicate increased network activity.
  • ETC’s bullish momentum may be limited, as per the moving average indicators.

From time to time, Ethereum Classic [ETC] Significant price pump usually associated with franchise activity. The last such event occurred on January 4, when ETC bulls launched a surprise attack and pushed the token up by more than 20% in a single day.


Read Ethereum Classics [ETC] Price forecast 2023-2024


The increase in ETC means that the token has outperformed some of the top cryptocurrencies, including Ethereum [ETH] and bitcoin [BTC]. The possible reason for this was the pivot in the Ethereum Classic hash rate. The latter had an undeniable impact on ETC’s price action.

Source: Coinwarz.com

The hash rate of Ethereum Classic fell for most of December and fluctuated near the end. It may not have made a huge recovery, but the slight uptrend shows a change in mining activity. This may be due to the higher profitability of miners, which may indicate that there has been a significant increase in transactions.

The notion that ETC transactions have increased in recent days is supported by an increase in volume. This has been the case for the past two days, as Ethereum Classic volume surged to a new monthly high.

ETC size

Source: feeling

Why ETC’s upside might be limited

This strong increase in volume resulted in a significant increase in the price movement of ETC, which was trading at $18.63 at the time of writing. However, it was trading as low as $15.83 during the January 4 trading session. However, this rally may be limited, especially now that ETC is touching the 50-day moving average.

ETC price action

Source: TradingView

ETC price also crossed the 50% RSI level. So far, the price has been under some selling pressure, which indicates the intensification of profit-taking after the rally. In addition, the MFI is now overbought, so the chances of capping the rally are much higher.

There are other observations that point to a greater chance of the bears regaining control. For example, the weighted sentiment indicates that many analysts still have a bearish bias.

ETC Weighted Sentiment and Binance Funding Ratio


How many ETCs can you get for $1?


Binance Funding Rate confirmed an increase in derivative demand for ETC. However, this upside trend was limited, indicating that the wave of demand may be weakening. It also doesn’t help that Ethereum Classic has seen relatively low development activity in recent weeks.

ETC development activity

Source: feeling

Lack of vigorous developmental activity may fail to facilitate strong positive feeling. Thus, we can conclude that the short-term outlook for ETC may still favor the bears. This may not necessarily be the case if the market experiences an unexpected increase in demand.

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