Understanding Ethereum Classic’s (etc) market dynamics **
The cryptocurrency world has seen its fair part of volatility and market fluctuations over the years. Among the many that came up, a remarkable player is the Ethereum Classic (etc), a blockchain -based platform that has received significant attention in recent times. In this article, we will delve deeper into the dynamics of the etc, exploring their exclusive resources, current trends and what drives their price movements.
What is Ethereum Classic?
Ethereum Classic is an open source blockchain network, decentralized and without permission, designed by Vitalik Buterin, co-founder of Ethereum. However, unlike Mainnet Ethereum (ETH), which was forked in a new blockchain called Ethereum Classic (etc) in 2016 to address scalability and safety, etc., chose to continue building at the top of the original Blockchain Ethereum.
Market antecedents
In March 2021, the price of etc began to emerge after a series of high -level hacks and robberies on the Ethereum main network. This led to the creation of a new token named Ethereum Classic (etc), which is designed to be forked in the original Blockchain Ethereum, in order to address scalability and safety problems.
Market dynamics
The market dynamics of etc can be attributed to various factors -chave:
- Hodl MendSet
: The cryptocurrency community has shown a strong “Hoddling” mindset, where investors are choosing to keep their tokens etc, rather than selling them for the current low price in the hope that prices will rise.
- Network Effects : As more users and developers enter Ethereum classic network, it becomes more attractive for new investors to get involved, increasing the demand for etc and further increasing their value.
3.
- Adoption by high volume traders : Many high volume traders have joined the community of etc in recent times, bringing significant purchasing power to the market and increasing prices.
Price trends
The price trends of etc over time are as follows:
- March 2021: Price increase after major hacks at Mainnet Ethereum
- April 2021: Price stabilization due to increased adoption by investors
- June 2021: decline of prices due to increased competition and higher negotiation volumes
- October 2021-Present: continuous growth driven by the “Hoddldling” and network effects
Technical Analysis
The technical analysis of etc can be divided into several indicators -chau:
* Relative Strength Index (RSI) : Etc RSI is currently in excessive territory, indicating that a possible bull race may be underway.
* Bollinger Bands : The price action of etc is often characterized by the presence of Bollinger bands, which indicate volatility and possible breaks.
* Support and Resistance : The $ 1.20 support level has been tested several times in recent months, while resistance levels around $ 3.00 may be more difficult to break.
Conclusion
In conclusion, Ethereum Classic (etc) is a single cryptocurrency, with a strong market dynamics driven by investor’s sentiment, network effects and adoption by high volume traders. Although the price of etc has experienced significant volatility in recent months, it remains an attractive option for those who want to build at the top of the original Blockchain Ethereum.
Responsibility exemption
This article should not be considered as an investment consultancy. Cryptocurrency markets are highly volatile and prices can float rapidly. It is essential to conduct complete surveys and consult a financial consultant before making investment decisions.
