The Ethereum Classic (ETC), price soared on Sept. 5, based on positive reports regarding its adoption by crypto miners.
Top mining pool supports Ethereum
The daily chart showed that ETC’s price rose 14.5% to almost $37.25 per token. The massive gains occurred days after BTC.com, a crypto mining pool and blockchain explorer, launched an Ethereum Classic pool that charges “zero-fee” mining.
Daily price chart for ETC/USD Source: TradingView
This announcement was made after “the Merge”, a long-awaited network upgrade that would transform Ethereum’s energy-intensive proof of work (PoW), protocol to a more cost-efficient and scalable alternative, the Proof-of-stake(PoS) protocol. It was expected to be announced on Sept. 19 or earlier.
However, Ethereum’s PoW miners will be rendered useless by the switch to PoS. The Merge could make Ethereum Classic, the original Ethereum version, unusable.
It is already drawing PoW miners in large numbers, as evidenced by its hashrate which reached a record high of 41.81 Terrahash per Second (TH/s), on Sept. 4. Hashrate, for those who don’t know what it is, refers to the computational power required to mine and process transactions on a PoW Blockchain.
Source: CoinWarz. Source: CoinWarz
ETC has seen a remarkable rally in recent months due to this migration; it is now up 200% from mid-June.
The ETC price could go up another 60%
Technically speaking, Ethereum Classic appears ready for a price rally of around 60% in September.
ETC’s recent price rise has been noted as a “bull flag”. Bull flags are formed when the price consolidates lower following a strong uptrend. They resolve when the price moves in the opposite direction to its previous trend, and they are therefore bullish continuation patterns.
ETC has tested its bull flag’s top trendline since Sept. 5 in anticipation of a breakout move. Let’s suppose the token does it. Its chances of it rising further are higher. As a rule, technical analysis suggests that the price may rise as high as the length of the previous uptrend, as shown in the below.
ETC/USD daily chart with a bull flag breakout setup. Source: TradingView
ETC bull flag’s profit target is now at $58.50. This is almost 60% more than today’s price.
Related: ETH Merge – CoinGecko founder shares his strategy for forked tokens
A decisive break below bull flag’s lower trendline could lead to the invalidation of the upside setup described above.
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Eileen Wilson –Technology and Energy
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