Why is Ethereum Classic (ETC) crypto grabbing eyeballs?

Highlights

• Ethereum Classic (ETC) is primarily a hard fork of the Ethereum token and functions as a smart contract network to support and host multiple DApps.
• The ETC crypto on 18 July witnessed a massive rally of over 18% and a volume gain of 134.45% at 5 AM (GMT +1), according to CoinMarketCap.
• Ethereum Classic crypto on 18 July was trading at US$21.33 with a volume of US$1,36,49,63,014 over a day, according to CoinMarketCap.

As the overall crypto market knocks on the doors of achieving the US$1 trillion mark again, one crypto – Ethereum Classic -- seems to be playing its part in that aspect. The overall market cap on 18 July stood at US$991.97 billion with a 24-hour trading volume of US$65.03 billion. 

Ethereum Classic (ETC) is primarily a hard fork of the Ethereum token and functions as a smart contract network to support and host multiple DApps. Built on top of the Binance Smart Chain, the ETC crypto operates on the Proof-of-Work (PoW) protocol to validate transactions, just like traditional Ethereum, but in operations, it's different from the Ethereum blockchain. 

As a permissionless protocol, it was formed in 2016 and founded by the likes of Vitalik Buterin and Gavin Wood, who are the original creators of the Ethereum blockchain. However, an ideological and technical difference meant a split from its parent community following the infamous DAO attack. Thus, following the split, the ETC remained as an original immutable chain, continuing as a hard fork.

The ETC crypto on 18 July witnessed a massive rally of over 18% and a volume gain of 134.45% at 5 AM (GMT +1), according to CoinMarketCap. 

What's driving ETC crypto? 

ETC crypto seems to be generating massive interest following the news of the Ethereum Merge update. The Ethereum Merge will see Ethereum's transition from the PoW to Proof-of-Stake (PoS). On 15 July, the Ethereum developers announced the date for the eventual change, which is 19 September.

Since the official date has been announced, both ETC crypto and Ethereum have witnessed a parabolic rise. In fact, if we look at the charts, it will reveal that the RSI indicates a considerable jump, pushing the ETC crypto's value to 72.45 during the intra-day trading session. 

Image credit: Trading View

This means that the market participants are showcasing keen interest in the token and are looking to make the most of the bullish trend. 

Even the MACD line indicates the bullish momentum has got a lift since the announcement created a gap between the signal lines, signalling it is getting stronger. The Directional Movement Index seems to be in sync with the MACD indication, suggesting that the movement may see upward momentum in the coming days.

Image credit: Trading View 

How is ETC crypto's price faring?

Ethereum Classic crypto on 18 July was trading at US$21.33 with a volume of US$1,36,49,63,014 over a day, according to CoinMarketCap. The 24th-ranked crypto has been up by 47.8% over the past 30 days and over 40% over the past week. ETC crypto had a live market cap of US$2,89,79,47,981 with 13,58,65,511 ETC coins in circulation.

Ethereum Classic rally has been impressive considering the market is stuck in a crypto winter phase. There are positive signs that the overall crypto market may be back with a bang and shrug off its crypto winter tag. Having said that, it is also important to note that nothing is constant in the crypto market, and the fortunes of cryptos can change at any given time. Therefore, market participants must make sure that they do market research and tread carefully in such a market.  

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