The price of Ethereum Classic (ETC) rose on September 5 thanks to a series of positive news about its adoption among cryptocurrency miners.
The largest mining pool supports Ethereum Classic
On the daily chart, ETC price is up 14.5% to nearly $37.25 per token. His huge gains came days after BTC.com, a blockchain explorer and cryptocurrency mining pool, launched a specialized Ethereum Classic pool with “fee-free” mining for three months.
The announcement followed “The Merge,” a long-awaited network upgrade that would swap Ethereum’s energy-intensive proof-of-work (PoW) protocol for a “cost-effective” and scalable alternative, proof-of-work. stake (PoS), on or before September 19.
But the switch to PoS will make Ethereum PoW miners useless. On the other hand, Ethereum Classic, the original version of Ethereum, which still uses the PoW mechanism, could become a haven for miners affected by the update.
The network is already attracting PoW miners in droves, which is confirmed by its hash rate, which reached a record high of 41.81 Terrahash per second (TH/s) on September 4. For the uninitiated, hashrate is the total computing power used to mine and process transactions on a PoW-based blockchain.
This migration has helped ETC go incredibly up in recent months; it is up 200% since mid-June.
ETC price could rise another 60%
From a technical point of view, Ethereum Classic looks poised to experience a price hike of around 60% in September.
In particular, the price of ETC has formed a “bull flag” in recent weeks. Bull flags appear when the price consolidates lower after a strong uptrend. In the meantime, they resolve after the price breaks in the direction of its previous trend and are therefore considered bullish continuation patterns.
As of Sept. 5, ETC was retouching the upper trend line of its bull flag for a potential breakout move. Suppose the price manages to break out to the upside. Then your probability of continuing to rise will be higher. Also, as a rule of technical analysis, the price could go up as long as the duration of the previous uptrend, as shown below.
In other words, the ETC bull flag profit target comes in at around $58.50, almost 60% above the current price.
Conversely, a decisive break below the lower trendline of the bull flag could invalidate the bullish setup explained above.
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