It is not uncommon to see some unusual crypto market behavior during this time of the year. As far as the Ethereum Classic price is concerned, the current trend is promising, yet appears unsustainable.
Ethereum Classic Price Surges Hard
It has been a rough year for the altcoins, but some of them seem to show some potential for a recovery. This late in the year, traders and speculators will be pleased to pocket any gains, regardless of how long-lived those trends may turn out to be. Ethereum Classic has made many people good money today, but it will come down eventually.
To put this into perspective, the Ethereum Classic price has noted a strong 13% gain over the past 24 hours. That in itself is remarkable, albeit it is aided slightly by the rise in bitcoin value. What is impressive, however, is how the value per ETC has gone from $4.09 all the way to $4.61 without skipping a beat.
Such a steep and straight uptrend cannot be sustained in any financial market. Particularly where cryptocurrencies are concerned, due to their notorious volatility. While ETC may have nearly its full market cap in trading volume today, it is not necessarily sufficient to keep this momentum going for too long.
On social media, the sentiment appears to shift toward a negative outlook as well. Devchart claims there will be massive bump in the road which may prove very difficult to overtake. A lot of good money has been made by traders already, and pushing one’s luck is never an advisable course of action.
Jokes aside, here are my thought about #ETC.
The pump hit the 200 EMA resistance.
I would wait for this level to be flipped and then target a 15% TP till next resistance.#Alts#Crypto pic.twitter.com/IBmXkuVD4D
— Devchart (@devchart) December 26, 2019
A somewhat similar sentiment is echoed by Nico. He is quite happy with the Ethereum Classic price reaching this BTC-based target for a 10% profit. Fro here on out, it seems unlikely that any further positive momentum will materialize, albeit that will primarily depend on what happens to bitcoin.
update on $ETC
Target reached at ~64k sats (10%+)😏
Closed and locked profits. If a new Flip occurs at this level, then aiming for a new leg up at ~73k
— Nico (@CryptoNTez) December 26, 2019
The primary reason for this Ethereum Classic price surge is the trading volume on Coineal. Based on the figures, one would expect this to be washtrading at its finest. Over $131m in volume from an exchange very few people actually use. ZB, OKEx, Digifinex, and P2PB2B all note $31m in volume or less. A very interesting development, yet one that doesn’t bode well for this uptrend.