As of late, Ethereum Classic [ETC] has shown a more positive trend compared to Ethereum [ETH], leading to speculation that it could be absorbing the liquidity that ETH is currently shedding.
With both cryptocurrencies displaying contrasting price movements and volume patterns, investors are starting to question whether ETC is emerging as a feasible alternative to ETH.
Price Actions of Ethereum Classic: A Varied Trend
At the time of writing, Ethereum Classic was trading at $24.54, indicating a 1.72% decrease intraday.
The current price chart revealed that ETC has entered a consolidation phase following a robust rally in December, trading below its 50-day moving average of $26.87 and above the 200-day moving average of $23.15.
Remaining above the 200-day moving average suggests that ETC is still experiencing a long-term upward trend despite short-term bearish movements.
Recent price actions of ETC have shown lower highs, hinting at a potential decline in bullish momentum. Yet, strong support at the $22.50 level indicates the possibility of a rebound if the overall market stabilizes.
ETH’s Decline, ETC’s Growth?
Conversely, Ethereum was trading at $3,090.12, showing a 0.86% decline for the day. Although ETH was in an overarching uptrend, it struggled to maintain crucial support levels.
The 50-day moving average stood at $3,377.56, while the 200-day moving average was $2,984.10.
A breach under the 50-day moving average signaled a potential loss of short-term momentum, making Ethereum susceptible to further downward pressure.
Noteworthy is the dwindling trading volume of Ethereum, as indicated by Santiment’s volume chart, suggesting decreased engagement from traders.
This diminishing interest could explain why some investors are shifting their focus towards Ethereum Classic, which has exhibited stronger relative performance.
Volume Patterns: ETC’s Growing Momentum
An in-depth analysis of Santiment’s volume chart showed a consistent rise in trading volume for ETC, reaching a recent peak of 584.46M.
This upsurge signifies renewed investor interest and increasing confidence in Ethereum Classic as an alternative to Ethereum.
Unlike ETH, whose volume has been decreasing, ETC’s liquidity remained robust, possibly indicating a shift in market interest.
Volume surges in late January 2025 aligned with price movements, reinforcing the notion that traders are actively involved in ETC.
This transition could be attributed to the belief that ETC provides a hedge against Ethereum’s weakening momentum or due to expectations of network advancements favoring ETC.
Future Outlook for Ethereum Classic
Looking forward, ETC must sustain its current trading volume and maintain support above the $22.50 level to further establish itself as a compelling alternative to Ethereum.
If Ethereum’s vulnerabilities persist, there is potential for ETC to gain more traction. However, investors should monitor resistance around $27.50, a level where selling pressure has previously limited gains.
On a broader scale, Ethereum Classic’s correlation with Ethereum implies that general cryptocurrency market trends will impact its trajectory.
If ETH stages a recovery, ETC could also benefit. Nevertheless, its independent surge in trading volume implies that traders are increasingly viewing it as a standalone asset rather than merely a derivative of Ethereum.