- Ethereum Classic whales are back, but momentum has started slowly
Classic Ethereum [ETC] briefly made the market’s top earners list in the past 24 hours. Many altcoins have found favor with the bulls this week, and some have enjoyed some upside as well. This rally was also supported by a sizeable increase in its market capitalization. Now, while this may not seem very important, here’s why it’s quite the opposite.
Read Ethereum Classic [ETC] Price forecast 2023-2024
Consider this: A look at ETC’s market capitalization revealed that it recently fell to a new 4-month low.
However, it is the next action that is of particular interest. ETC’s market cap has rebounded by a whopping $320 million in the past 4 days.
Why is it important to the Ethereum Classic network?
Well, aside from ETC being among the market’s biggest gainers in the past 24 hours, it underscores strong investor interest. The fact that ETC can command a market cap increase of more than $300 million is evidence of strong inbound demand. Especially considering the short time frame.
The increase in ETC’s market capitalization was supported by an increase in volume during the same time period. It’s worth noting here, however, that the volume increase was rather limited. This is a sign that there has been low retail accumulation to support the rally. In other words, the rally was supported by significant whale activity.
Can ETC maintain its prevailing momentum?
Investors should note that the latest rally is largely related to the entire cryptocurrency market. In other words, Ethereum Classic’s ability to continue to provide bullish momentum will depend on overall market sentiment.
Nonetheless, the latest ETC rally was supported by a significant shift in sentiment. Its weighted sentiment has rallied over the past 3 days, confirming a bullish outlook among investors.
It hasn’t had as much punch, compared to its previous rebound in sentiment. This could be because most investors are still uncertain about the state of the market, especially after the events that caused the recent crash.
Even so, here’s what investors should note about Ethereum Classic’s price action. Whale activity has been relatively low for most of November. The return of whale activity is therefore a good sign, confirming that sentiment is changing favourably.
Also worth noting is the price at which whales are buying back. Ethereum Classic has been trading within a downside support and resistance channel since August. As the pattern continues to stretch, the likelihood of a pattern break is greater.
The prevailing momentum has been slow. However, if the market continues to rally, there is a chance it will break below its descending resistance line.