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Ethereum Classic price has made a bullish breakout as cryptocurrencies rise.
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It jumped after the latest US inflation data showed prices fell.
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Some investors believe that Ethereum investors will switch to Ethereum Classic after the Shapella upgrade.
Ethereum Classic (ETC) price continued to rise on Thursday as the recent cryptocurrency rally regained momentum. The coin jumped to a high of $22.47, the highest level since March 18 this year. The coin has jumped more than 53% from its lowest level this year.
Ethereum Shapella Upgrade
There are three main catalysts moving the ETC price this week. First, there is the ongoing Bitcoin price rally that we wrote about here. This rally saw the coin jump above the key $30,000 resistance level for the first time since last June. It is now up more than 80% this year, making it a better performer than Tesla, stocks and gold. Cryptocurrencies like Ethereum Classic tend to have a close correlation with Bitcoin.
Second, the Ethereum Classic price reacted to the latest US consumer inflation data released on Wednesday. The data showed that the headline consumer price index (CPI) fell to 5.0% in March, the lowest level since 2021. Core inflation also fell on a monthly basis. Therefore, there is a likelihood that the Federal Reserve will start to pivot soon. This pivot will involve pausing speed increases and leaving them unchanged for a while.
Finally, Ethereum Classic reacted on Wednesday Shapella upgrade of Ethereum. That upgrade activation made it possible for Ethereum stakers to be able to withdraw their tokens. Data from Staking Rewards shows that the volume of staked Ethereum is over $37 billion.
The move was seen as positive for Ethereum Classic due to its controversy and regulatory concerns. The Securities and Exchange Commission has indicated that it views all tokens with a stake element as securities. Therefore, analysts believe that many investors will now move to Ethereum Classic, which is the equivalent of Ethereum before the merger. But in reality, it is unclear whether this transition will happen.
Ethereum Classic Price Analysis
The daily chart shows that the ETC price has been in a strong bullish trend for the past few weeks. And this week, the coin managed to break above the key resistance level of $21.35, where it struggled to get above earlier this month.
The coin has also jumped above the 25-day and 50-day moving averages while oscillators have continued to rise. Therefore, there is a probability that the coin will continue to rise as buyers target the next key resistance level of $24.92, which is about 12% above the current level.
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