Ethereum Classic Surges 13.5% Amid Short Squeeze and Technical Breakout

Ethereum Classic's recent price surge of 13.5% has sparked interest in the crypto community, but what drove this sudden increase? According to CoinMarketCap, the move appears to be driven by a short squeeze and technical breakout rather than new fundamental news or protocol changes.

Several traders on X highlighted that ETC's sharp move up was associated with forced closing of short positions and a jump in derivatives volume. One analyst noted ETC up around 12.8 percent, describing 'Ethereum Classic price jumps 4.55% in one hour amid $10K short liquidations,' citing Pluang data in a post on X.

The technical breakout is clear, with ETC breaking through key resistance levels and moving averages, which fits with a flow-driven spike rather than a headline-driven rally. A technical trader highlighted that ETC had tested its 1-day 200 exponential moving average and was 'now reclaiming weekly high of $10.0,' with the next target at the weekly 200 EMA and higher levels.