Ethereum Classic ended one of its most bullish months in July, the phase that saw the altcoin gaining over 200%. ETC holders might wonder whether to sell the token or keep it in hopes of further bullish revivals. Here’s what you might consider for informed decisions.
Ethereum classic encountered resistance briefly beyond 0.786 FIB retracement following July’s whopping 244% upsurge. Meanwhile, that represented the highest rebound since the bear market emerged in 2021. However, some individuals have already indulged in profit-taking.
Profit-booking welcomed an over 28% slide for the token. Meanwhile, that’s logic after a massive upward price move. ETC has seen impressive demand in August’s first week (despite its bearish retracement). While publishing this blog, the token traded at $37.59, gaining approximately 17% within the past two days.
The upside emerged after Ethereum Classic rebounded from the 0.5 FIB mark. Meanwhile, the altcoin sees healthy demand around current value areas. And most importantly, somewhat low selling momentum.
Assessing Potential Outcomes
The highlighted observation indicates that ETC could keep its price actions beyond $30 and contemplate further upswings. Nevertheless, that would need incentives to encourage HODLing by investors.
The recent rally could have enjoyed a boost amid expectations that miners and investors interested in PoS (Proof-of-Work) consensus will migrate to ETC following the awaited Ethereum merge. Ethereum Classic’s market capitalization increase highlights a massive capital inflow since mid-July.
Its market capitalization surged over twofold from below $2 billion in mid-July to the $5.9 billion high by July 29. Also, the network saw an impressive development activity surge, contributing to investor sentiment enhancement.
Though healthy developmental activity could boost sentiment, the jury will determine August’s market forces. If this month brings bullishness to the cryptocurrency market, Ethereum Classic will possibly see further upside. Meanwhile, a bear regime would see ETC surrendering its gains.
Meanwhile, the asset’s impressive surge in July shows the massive demand Ethereum Classic experienced following its previous enormous bearish phase. The crypto space maintained bullishness, but downsides emerged in March’s second half. Thus, investors should watch out for similar outcomes playing out.
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