- Ethereum Classic price has made a strong comeback.
- This rebound could be a dead cat bounce since volume is still low.
Ethereum Classic price has bounced back and outperformed other cryptocurrencies recoil. The ETC token is trading at $24.23, which is about 54% above the lowest level this month, bringing its total market cap to more than $3.2 billion.
Why is ETC price rising?
Ethereum Classic is a blockchain project that seeks to achieve the original vision of Ethereum developers. It is a fully decentralized computing platform that enables developers to build fully decentralized applications.
There are several reasons why some developers prefer Ethereum Classic instead of Ethereum. First, unlike Ethereum that has some degree of centralization, Ethereum Classic is fully decentralized.
Second, it is a fully proof-of-work protocol. While PoS has many advantages, PoW has been proven to be a safer and more reliable option.
Further, Ethereum Classic is built using a combination of technologies in Bitcoin and Ethereum, making it more reliable.
In the past few years, a number of developers have embraced Ethereum Classic. Some of these developers are CoinRabbit, NFT List, MoonLama, and NFTCreed among others.
Learn more about how to buy Ethereum Classic.
This number lags that of Ethereum by far. Ethereum has thousands of applications such as Aave, Curve Finance, and Compound. It has also been used to build some of the most popular NFT project like Azuki and Bored Ape Yacht Club among others.
It is unclear why the ETC price has been in a strong bullish trend lately. Besides, there have been no major news in the ecosystem. There is a likelihood that investors are buying the dip considering that the coin has fallen by over 86% from its highest level in 2021.
Ethereum Classic price prediction
The ETC price has been in a strong bullish trend in the past few days. The coin has managed to move above the important resistance level at $21.71. This was the lowest level on January 21st. The coin has moved below the 25-day and 50-day moving averages. It is also below the descending trendline that is shown in red while the Relative Strength Index (RSI) has been rising.
Now, considering that volume is still low, there is a likelihood that this Ethereum Classic price has formed a dead cat bounce. As such, the coin will likely resume the downward trend and retest the support at $20.
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