Ethereum Classic’s breakout and shifting market trends – Explained

Open Interest surged to the 83rd percentile, indicating heightened activity and growing interest among traders.
Grayscale’s Ethereum Classic Trust has played a pivotal role in legitimising ETC as an investment asset

Ethereum Classic (ETC) has caught the attention of crypto traders and investors lately due to its recent breakout and performance. In fact, the altcoin’s adherence to Proof of Work (PoW) and its historical significance in the blockchain world have made it a resilient contender in the cryptocurrency market.

As it continued with its latest breakout, its Open Interest surged to the 83rd percentile, indicating heightened activity and growing interest among traders. Simultaneously, the True Retail Long% dropped sharply to the 0.1 percentile – Its lowest recorded level.

Source: TradingView

This divergence seemed to offer a contrast in market sentiment since retail traders favored short positions while institutions and whales appeared to drive the rising Open Interest.

Here, the hike in Open Interest signaled sustained engagement, while the declining True Retail Long% hinted at a potential underestimation of ETC’s bullish potential by smaller traders.

ETC’s security and attraction of PoW investors

Ethereum Classic’s adherence to Proof of Work (PoW) remains a major attraction to investors. PoW ensures a diverse security model, resistant to 51% attacks due to the computational power required to alter the blockchain.

This unchangeable security framework resonates with investors who value the reliability of traditional blockchain mechanisms. Unlike Proof of Stake (PoS), where security hinges on the financial stakes of validators, PoW’s reliance on computational effort reinforces trust in the network’s integrity.

Additionally, PoW promotes decentralization by enabling anyone with appropriate hardware to participate in mining. This reduces the risk of centralization, which PoS systems often face due to wealth concentration among validators.

Ethereum Classic’s steadfast adherence to th

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Author: Clinton Otieno

AMB-Crypto