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Ethereum Classic (ETC) continues to reap benefits from its blockchain rival Ethereum's upcoming transition from proof-of-work (PoW) to proof-of-stake (PoS). 

Vitalik Buterin likes Ethereum Classic

Notably, ETC's price jumped by a little over 20% to reach $27.50, two days after Ethereum co-founder Vitalik Buterin's endorsement of Ethereum Classic went viral across social media. In his comments, Buterin presented the chain as a "fine" PoW alternative to Ethereum.

The statements appeared amid fears that Ethereum's potential network upgrade this September will force PoW miners elsewhere. 

In other words, they would be looking for alternative PoW networks to ensure that their rigs remain functional. That could benefit Ethereum Classic since it's the original version of Ethereum and could therefore ensure an easy migration for miners.

ETC technical outlook

Impressively, ETC price has rebounded by over 120% since mid June, making it the standout performer over the past month. Nonetheless, it is still down over 85% versus its May 2021 record high of $185, suggesting that its ongoing retracement move could technically be a bull trap.

Bitcoin (BTC) attempted to claw back losses on July 27 as a macro day of reckoning arrived for risk assets.

Analysis: $24,300 resistance “not a good sign”

Data from Cointelegraph Markets Pro and TradingView confirmed a 24-hour high for BTC/USD prior to the Wall Street open on July 27.

The pair had sunk below $21,000 in the first portion of the week, heightening nervousness among traders already wary of potential headwinds from the United States Federal Reserve.

July 27 is set to reveal the Federal Open Markets Committee‘s (FOMC) next base rate hike, expectations flitting between 75 and 100 basis points in size but favoring the former. Both, however, are likely unfavorable for cryptocurrencies, as they reflect worries over both inflation and a willingness to bring the economy closer to recession to tame it.

“I will remain in my short while we are below the range high at $22,200,” popular analyst Crypto Tony summarized in part of his latest Twitter post on the day:

On July 26, Bitcoin (BTC) price dropped below $21,000, giving back the majority of the gains accrued in the previous week and returning to the $23,300 to $18,500 range that Glassnode analysts describe as “the Week 30 high and Week 30 low.” 

A handful of analysts and traders attribute the July 26 to July 27 Federal Open Market Committee (FOMC) meeting and the expected Federal Reserve rate hike as the primary reasons for the current sell-off.

Barring the announcement that the United States economy has entered a recession, a few traders believe that the expected 75 to 100 basis point (BPS) hike will be followed by a relief rally that could see BTC, Ether and other large-cap altcoins snack back to the top of their current range. Of course, this sentiment reflects more speculation than sound analysis, so take it with a grain of salt.

Given that BTC price is simply continuing to trade in the same range that it has been in for the past 42 days, the real question is whether the market will bring more consolidation or another round of capitulation.

In its July 26 on-chain newsletter, Glassnode analysts posit that investors can find their “conviction through confluence” of multiple technical and on-chain metrics which suggest the peak of capitulation has long past.