Does Ethereum Classic have enough momentum to rally towards $31?

Altcoins have been collectively rallying over the past couple of days. On the weekly, a lot of the high alts have managed to pose double-digit return figures. However, one specific alt that had been dwelling beneath the shadow of the alt king Ethereum, has been stealing the limelight of late.

While the likes of Cardano, XRP, Solana, and Dogecoin had their 7-day RoI capped beneath 20%, the #twenty second ranked Ethereum Classic, has climbed up by 77%. The token has managed to pull off a 180-degree flip over the previous 9-odd weeks and is presently buying and selling across the similar value because it was through the finish of May.

Ethereum Classic, in the intervening time, stands at a important juncture. As illustrated under, it has damaged previous its robust resistance at $25.5 [yellow], which is an optimistic signal. So, if the bullish thrust persists out there, merchants can contemplate $28.5 and $30.75 as short-term ETC targets.

Source: TradingView

Ethereum Classic’s yearly low twins

The state of Ethereum Classic’s metrics, nonetheless, stays to be fairly gloomy. Let’s contemplate the case of the transaction switch depend first. The studying of this metric presently stands at 37.49k, and as illustrated under, the identical is at its lowest level this 12 months. This basically implies that Ethereum Classic is presently not fostering transactions on its community like earlier than.

Source: Messari

Alongside, the state of the tackle exercise additionally painted an analogous image. Per Messari’s knowledge, solely round 20.75k addresses have been lively on Friday as opposed to 7 July’s 47.5k. The present determine is, once more, fairly shut to its yearly low at 20.4k, making it one other purple flag.

Source: Messari

Self-sustainability at stake?

Now, it’s a identified reality that in previous bullish/bearish phases, Ethereum Classic has all the time tagged together with Ethereum. But now, their correlation just isn’t that top. Per knowledge from Cryptowatch, the weekly correlation of the 2 forked tokens stands solely round 0.56. This principally implies that if ETC has to proceed rallying, it can have to stay self-sustainable.

Keeping the present state of the on-chain metrics in thoughts, it seemingly received’t be a cakewalk for ETC to proceed its rally. Also, its market is presently overheated and is primed for a correction. So, if the bearishness certainly intensifies, then the alt may find yourself falling under its afore-highlighted resistance. In such a case, it will seemingly discover solace at both of its EMAs round $22.04 and $19.06.

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About the Author: Daniel