Ethereum Classic (ETC) continues to reap benefits from rival chain Ethereum’s upcoming transition from a proof-of-work (PoW) to proof-of-stake (PoS) consensus algorithm.
Vitalik Buterin likes Ethereum Classic
In particular, the price of ETC soared a little over 20% to hit the $27.50 mark, two days after Ethereum co-founder Vitalik Buterin’s endorsement of Ethereum Classic was go viral on social networks. In his comments, Buterin presented the network as a “good” PoW alternative to Ethereum.
The statements came amid fears that the potential Ethereum network upgrade in September will force PoW miners to deploy their equipment elsewhere.
In other words, they would be looking for alternative PoW networks to ensure that their teams continue to operate. That could benefit Ethereum Classic as it is the original version of Ethereum and thus could ensure easy migration for miners.
Technical Outlook for ETC
Impressively, the ETC price has rallied more than 120% since mid-June, making it the most prominent in the past month. However, it is still more than 85% below its May 2021 all-time high of $185, suggesting that its current move could technically be a bull trap.
A convincing proof is the 150% rebound of the ETC price between June and September 2021, which turned into a false sign of recovery.
Interestingly, the current ETC price action looks similar to that of 2021, as illustrated by the daily chart below.
Similar to 2021, this year ETC has been consolidating within the range defined by its 0.236 Fib (~$28.50) line as support and the 0.382 Fib (~$22.80) line as resistance. Similarly, the token’s daily relative strength has been correcting from its “overbought” zone during price consolidation.
Therefore, ETC could continue to trend sideways in the $22.80-$28.50 price range, followed by a break towards the 0 Fib line near $13.65.
That is, a drop of 50% from the current price.
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