Ethereum Classic [ETC] has been attempting to recover all the losses it witnessed over the past few months. ETC was halfway through making it happen. However, surprisingly, its investors, of late, decided to take a break.
This has resulted in a sudden drop in the on-chain performance.
On the charts, ETC surpassed expectations in the last two weeks.
The token rallied by more than 96.6%, while other altcoins like Ethereum were struggling to rise by even 40%.
As of 27 July, ETC was trading at $27.1. It managed to recover half of the losses it noted between March and June when the altcoin took a hit of 72.24%. Thus, falling from $49.3 to $13.6.
Ethereum Classic price action | Source: TradingView – AMBCrypto
Coincidentally, the pattern of ETC’s rise and fall is very similar. Every time the cryptocurrency rallies, it notes excessive buying pressure.
This results in the altcoin being overbought. Right after which ETC begins its downtrend that lasts anywhere between one to three months.
Well, the month of July also witnessed ETC entering the overbought zone. And, it is expected of ETC to repeat historic patterns thanks to the ongoing rise.
However, there seems to be an exception- at the moment, ETC does not have a lot of room to rally as it needs to cool down. And, it seems like the investors had already anticipated the same.
While ETC remained stuck in sideways movement this week, its investors began pulling out of the network.
Over the week, the active users on-chain, which had already been on a decline since March, fell by almost 30% leaving only 19k investors active.
Ethereum Classic active addresses | Source: Coinmetrics – AMBCrypto
This affected the transactions observed on the network as well.
After spiking to more than 80k earlier last week, the number of transactions declined by 40% in the span of seven days and dropped to a 14-month low of 35k, figures that were last seen back in May 2021.
Ethereum Classic transactions | Source: Coinmetrics – AMBCrypto
Thus, what Ethereum Classic needs is its investors’ presence as their disappearance will create an atmosphere of selling.
Additionally, the market value of the asset is below 1.0, and if things go south, the market value will drop again.
Ethereum Classic market value | Source: Coinmetrics – AMBCrypto