Is the Ethereum Classic’s bull run over, or do buyers have a chance?

• Ethereum Classic gains are cooling but maintain double-digit surges in the week.

• Ethereum Classic has been benefiting from the expected Ethereum shift to PoS.

• ETC may correct further, but momentum is still strong for buyers.

Ethereum Classic ETC/USD is up 12.70% in the past week. However, the token has been weakening. ETC was trading at $41.27 as of press time, below its previous top above $45. The decline elicits questions on whether the recently bullish momentum is now over.

Reflecting, Ethereum Classic gains have largely been attributed to the expected Ethereum merge. Ethereum Classic is a Proof-of-Work blockchain. Investors project that Ethereum’s move to PoS will allow miners to move to Ethereum Classic. The speculation has attracted some disagreements. Some analysts have warned Ethereum Classic carries limited applications. The migration of miners is also faulted and seen to cause negligible impacts.

It remains unclear how much Ethereum’s PoS shift will benefit Ethereum Classic. Nonetheless, the latter continues to enjoy positive publicity. 

Overbought Ethereum Classic slides after meeting resistance.

Source – TradingView

From the technical outlook, the Ethereum Classic token entered the overbought level at $45. There is no bear trigger for the cryptocurrency, which also remains supported by the moving averages. ETC has formed a double top at the $45 resistance and is sliding.

We consider the current slide as an action by traders to take profits after the latest gains. Further gains are possible after a correction. The next level to watch for the cryptocurrency is $34 and further down to $26. 

Summary

Ethereum Classic has been benefiting from the expected move of Ethereum to PoS. The cryptocurrency is sliding from an overbought region. Further retracements are possible if the cryptocurrency fails to break past $45. Watch for price action at $34 next.