u.today
$ETC, the native asset of the Ethereum Classic chain, suddenly printed a massive green daily candlestick as its price rebounded from yesterday's lows of $15.64. The kick initiated pushed $ETC's price to intraday highs of $18.18 seen at press time, where a seemingly significant barrier was met.
At the time of publication, $ETC was trading up 12.09% in the last 24 hours at $18. The Ethereum spinoff is also up 17.42% in the past week.
According to blockchain analytics firm Santiment, Ethereum Classic is enjoying a pretty nice rally of its own. It further added, "Not only is volume high, but it's also being shorted massively by traders on exchanges."
According to CoinMarketCap data, $ETC trading volume has shot up by 238% in the last 24 hours.
Therefore, the reason for the recent sharp spike might be partly due to a short squeeze. Most often, a "short squeeze" happens when many traders bet against an asset and its price shoots up instead. A short squeeze results primarily from the massive short selling of an asset.
Ethereum Classic was a top gainer ahead of the Ethereum Merge event, which took place in mid-September. After the much-publicized Merge event and the hype faded, $ETC's price fell steadily, losing nearly half of its value. For context, on the day of the Ethereum Merge, $ETC traded near $38.
Technically, for Ethereum Classic to continue its upward trend, the short-term barrier above $18 needed to be broken, with the target of $24 in sight.
In other news, the $ETC collaboration says it is changing the RPC URL for the Ethereum Classic mainnet from Ethercluster to Rivet. The Ethercluster RPC endpoints will be discontinued on July 1, 2023, a notice in a blog post reads.