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  • Ethereum Classic (ETC/USD) breaks above descending trendline but exercise caution

    Ethereum Classic (ETC/USD) breaks above descending trendline but exercise caution

    • Ethereum Classic is up 18% in the week

    • The network has witnessed an increased hash rate

    • Ethereum Classic still faces bear pressure at $19

    Ethereum Classic (ETC/USD) has been of bull interest in the last two days. Despite losing by an intraday 1% on Friday, it was still up 18% in the week. A majority of these gains happened on January 04, 2023. The gains pushed the cryptocurrency above a crucial descending trendline that has contained ETC for a while. But how far can ETC gains continue?

    Ethereum Classic was tipped for success when Ethereum shifted to the Proof of Stake protocol. Ethereum Classic is itself a Proof of Work protocol. Thus, Ethereum’s shift, also known as the Merge, was expected to push PoW miners to Ethereum Classic. Although initially boosting the price, ETC later crashed as the speculations waned.

    The latest ETC gains reignite hopes of miner activity on Ethereum Classic. While the hash rate went downward in December 2022, it started to gain momentum toward the new year. The hash rate improved from 97.5975 TH/s on December 27 to 111.7497 TH/s on December 30, according to CoinWarz data. That could indicate increased miner activity and ETC transactions which boosted prices after the new year. But buyers may need to exercise caution at the current price level.

    Bullish ETC still facing bearish pressure despite breakout

    ETC/USD Chart by TradingView

    A technical outlook shows momentum has increased strongly for ETC. The MACD indicator is attempting to break above the neutral zone. However, bears are trying to force a correction after ETC reached resistance at $19.

    What to do with ETC?

    Despite breaking above the descending trendline, ETC is facing a correction. The price is yet to trade above the previous high.

    A break above the $19 resistance is the needed validation to consider further upsides. Investors should only buy ETC if it recovers above $19 with a confirmed bullish momentum. At the current price, ETC still faces a slump back to the $14 bottom price. 

    Where to buy ETC

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


    Buy ETC with eToro today

    Binance

    Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

    Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.


    Buy ETC with Binance today

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  • Why you need caution trading Bitcoin (BTC/USD) this week

    Why you need caution trading Bitcoin (BTC/USD) this week

    Bitcoin (BTC/USD) trades at $20,390, a clear price decline since topping $21,000 late last month. There is no doubt that BTC remains resilient against a less reassuring macro outlook. The cryptocurrency has strongly defended the $19,500, which has become a crucial psychological level. Consequently, BTC’s technical outlook remains bullish as long as this level is maintained. But investors may need to exercise caution this week.

    The Federal Reserve interest rate decision remains the focal point this week. We already know that inflation has been running higher than estimated. With that in mind, investors have earmarked a 75-basis points rate hike when the Fed issues a statement. The expectation has raised caution in all markets, which has been responsible for the BTC slowdown. A rate hike followed by a hawkish Fed statement could spook markets and force a further price fall.

    On the contrary, expectations grew mixed the last one week that Fed may settle for a soft stance. With growing recession fears, analysts projected that the Fed would move slower. For this reason, BTC saw some recoveries to above $21,000.

    As the Fed nears its policy decision, mixed expectations may not be good for Bitcoin. That is captured in the price reaction, which has stalled despite remaining stable.

    Bitcoin stalls ahead of FOMC decision

    Source – TradingView

    On the daily chart, Bitcoin met a minor resistance at $21,000. Momentum is weakening, but the MACD indicator remains in the bullish zone.

    The 20-day MA crossed above the 50-day MA, suggesting that BTC was heading higher. Both moving averages support the cryptocurrency below.

    Should you buy BTC?

    The technical indicators and the $19,500 support give a bullish view of the BTC price. However, the sentiment around cryptocurrencies, in general, is mixed. Investors are turning to the Fed statement to assess a bull scenario.

    A dovish Fed could be the trigger for BTC to move higher. Similarly, the cryptocurrency could head back to $19,500 on a hawkish Fed. Investors should be patient for now and gauge the BTC price based on the Fed decision.

    Where to buy BTC

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


    Buy BTC with eToro today

    Bitstamp

    Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.

    Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.


    Buy BTC with Bitstamp today

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