Ethereum Classic Rallies by 98% on DCG ETCG Purchase Announcement
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Ethereum Classic (ETC) touched a three-week high on Wednesday, following a $50 million investment by the Digital Currency Group and a goodish recovery in the broader crypto market.
In the early hours today, the cryptocurrency jumped to a high of $63, a 98% increase from its June 22 low of $31.90. This bullish momentum has helped the cryptocurrency regain market valuation, as it crossed the $7.5 billion mark.
Digital Currency Group (DCG) announced on June 21 that it recently approved the purchase of about $50 million worth of Grayscale Ethereum Classic (OTCQX: ETCG) shares. Grayscale is a New York-based cryptocurrency investment company that provides accredited/institutional investors with exposure to digital currencies in the form of traditional securities.
On the announcement day, ETC fell by over 22%, as it coincided with the broader crypto market crash triggered by the increased crackdown on the regional crypto and mining sector.
However, the crypto market appears to be in the middle of a healthy rebound from the recent crash. Traders took the opportunity to stock up on more Bitcoin (BTC) after it fell below the $30,000 psychological line.
Meanwhile, some analysts have highlighted that today’s spike comes amid the expectation of the ETC blockchain upgrade in July.
Key Ethereum Classic Levels to Watch — June 30
After touching the $62 mark for the first time since June 9, the ETC recorded a sharp correction to the $55 mark today. The cryptocurrency currently trades at the $57.50 level, a decent rebound from today’s bearish correction.
Buoyed by the 200 SMA, we expect the Ethereum Classic to reclaim the $62 high over the coming hours or days.
Meanwhile, our resistance levels are $60.00, $62.00, and $65.00, and our support levels are $55.00, $54.00, and $52.00.
Total Market Capitalization: $1.44 trillion
Ethereum Classic Market Capitalization: $6.71 billion
Ethereum Classic Dominance: 0.46%
Market Rank: #19
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