- Long-term holders increase supply from 43M to 66M, signaling strong accumulation.
- MVRV ratio at 0.76 indicates ETC is undervalued and ripe for investment.
- Large holders with over 1M ETC continue to boost positions, hinting at a rally.
Ethereum Classic Enters Accumulation Zone
Ethereum Classic (ETC) is showing signs of a potential bullish breakout as it trades near the lower boundary of a prolonged accumulation phase, according to recent on-chain analysis. Since bottoming out in 2022, ETC has maintained a narrow trading range, with key indicators suggesting a healthy correction rather than a bearish trend. The supply distribution highlights a significant shift: short-term holder (STH) supply has dropped from 107 million to 87 million coins since the local top on July 14, while long-term holder (LTH) supply has risen from 43 million to 66 million. This indicates that short-term investors are selling, while long-term holders are steadily accumulating, a classic sign of accumulation.
MVRV Ratio Highlights Undervaluation
Large holders, particularly those with over 1 million ETC, continue to add to their positions, pointing to institutional confidence and potential upward price pressure in the long term. The MVRV ratio, currently at 0.76, underscores ETC’s undervaluation, making it an attractive buy for long-term investors. A move above 1 could signal increased sell pressure, but for now, the metric supports a bullish outlook. Additionally, the investor price, averaging around $16, shows most holders remain in profit, further stabilizing the market.
Key Levels to Watch in Coming Months
This setup suggests ETC is poised for higher volatility and a possible rally in the coming months. The recent decline appears to be a consolidation phase, laying the groundwork for future gains. With ETC trading at approximately $18.02, the combination of institutional accumulation and undervaluation could drive significant price movement. Investors should keep a close eye on these trends, as the next few months may reveal whether ETC can capitalize on this accumulation phase.
For deeper insights, enthusiasts can explore live data and charts from platforms like Alphractal, which provide a comprehensive view of ETC’s market dynamics.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
