A 0 million addition for Ethereum Classic [ETC] is a sign of…

A $300 million addition for Ethereum Classic [ETC] is a sign of…

  • The Ethereum Classic whales are back, but the momentum is off to a slow start

Ethereum Classic [ETC] briefly joined the list of the market’s best winners in the last 24 hours. Many altcoins have found favor with the bulls this week, with quite a few also enjoying a bit of upside. This rally was also supported by a significant increase in market capitalization. Now, while that may not seem very important, here’s why it is.

Read Ethereum Classic [ETC] Price prediction 2023-2024

Consider this – A look at ETC’s market cap revealed that it recently fell to a new four-month low.

However, it is the subsequent action that is of particular interest. ETC’s market cap has declined by as much as $320 million over the past 4 days.

Ethereum Classic market cap

Source: Sentiment

Why is this important to the Ethereum Classic network?

Well, apart from the fact that ETC has been among the market’s biggest winners in the last 24 hours, it underlines strong investor interest. The fact that ETC can command an increase of >$300 million in market cap is confirmation of strong incoming demand. Especially considering the short time frame.

ETC’s market value increase was supported by an increase in volume over the same time period. Here, however, it is worth noting that the increase in volume was quite limited. This is a sign that there was low retail accumulation to support the rally. In other words, the rally was supported by significant whale activity.

Ethereum Classic volume

Source: Sentiment

Can ETC maintain its current momentum?

Investors should note that the recent upside is highly correlated across the crypto market. In other words, Ethereum Classic’s ability to continue delivering bullish momentum will depend on overall market sentiment.

Still, ETC’s latest upside was supported by a significant change in sentiment. Its weighted sentiment recorded a rise in the last 3 days, confirming a bullish outlook among investors.

Ethereum Classic Weighted Sentiment

Source: Sentiment

It didn’t have that much strength, compared to the previous feeling. This may be because most investors are still uncertain about the state of the market, especially after the events that caused the recent crash.

Still, here’s what investors should note about Ethereum Classic’s price action. Whale activity has been relatively lacking for most of November. The return of whale activity is thus a good sign, confirming that sentiment is changing favourably.

The price point the whales buy back at is also worth noting. Ethereum Classic has been trading within a descending support and resistance channel since August. As the pattern continues to expand, the probability of a pattern break is higher.

The prevailing momentum has been slow. However, if the market continues to recover, there is a chance that it will break below its descending resistance line.

Ethereum Classic price action

Source: TradingView

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