Ethereum Classic (ETC) begins consolidation after the short uptrend!
As a decentralized cryptocurrency, Ethereum Classic (ETC) operates on a decentralized blockchain network, and its tokenomics are designed to incentivize users to participate in the network and secure it. ETC is mined through a Proof-of-Work consensus mechanism, where miners compete to solve mathematical problems and earn the right to add new blocks to the blockchain.
ETC tokens are generated using the mining validation methods, which are also used to pay transaction fees on the network and to participate in decentralized applications built on the Ethereum Classic blockchain. In addition, users can also earn ETC through staking, where they can lock up their tokens to participate in the network’s consensus and earn rewards. ETC also has a token-burning mechanism, where a portion of transaction fees are used to buy and burn ETC tokens, potentially increasing the value of the remaining tokens.
Ethereum Classic ranks at the 24th spot with a market capitalization of $2,933,107,295 and is on a profit-booking spree after its bullish rally in the first three weeks of January 2023.
Consolidation has become the worst enemy of a bullish trend as prices lose the push to reach new highs. Technical indicators of Ethereum Classic show a decline in buying spree, which can be confirmed by MACD’s arching curve lines. Read Ethereum Classic price prediction to know whether this decline will break the support or not!
ETC has strong resistance at $27 levels, which could have created trouble for the hopeful buyers, but sellers have taken the profit booking a step ahead of reaching this level. The 200 EMA curve has become a steep rejection zone, while the 100 EMA still welcomes buyers. This would be a second failed attempt to surpass the 200 EMA zone.
From a technical perspective, the MACD indicator of Ethereum Classic has reached a selling curve with a crossover turning bearish. At the same time, the ETC token, which was trading in the bullish territory of overbought zones, has now reached the 50s, showing a notable decline in buying sentiment.
The Ethereum Classic breakdown from the 100 EMA curve can push the token towards the next round of a bearish trap while leading cryptocurrencies would consolidate above the price band. The strong support for ETC is available at $14.5, with $19 becoming yet another positive support for its price bands in case of a strong decline from currently trading $21 levels.