Ethereum Classic gets ‘endorsement’ from Vitalik Buterin, but ETC price still risks 50% crash

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Ethereum Classic gets ‘endorsement’ from Vitalik Buterin, but ETC price still risks 50% crash
Blockonomics


Ethereum Classic (ETC) continues to benefit from its blockchain rival Ethereum’s imminent transition from proof-of-work (PoW) to proof-of-stake (PoS).

Vitalik Buterin loves Ethereum Classic

Notably, the price of ETC jumped more than 20% to $27.50 two days after Ethereum co-founder Vitalik Buterin’s support for Ethereum Classic went viral on social media. In his comments, Buterin described the chain as a “good” PoW alternative to Ethereum.

The announcements come amid concerns that a potential network upgrade on Ethereum this September will force PoW miners to appear elsewhere.

In other words, they will look for alternative PoW networks to ensure their rigs remain functional. This may benefit Ethereum Classic as it is the original version of Ethereum and thus ensures easy migration for miners.

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ETC Technology Outlook

Impressively, ETC prices have rebounded more than 120% since mid-June, making it the top performer over the past month. Still, it’s down more than 85% from its May 2021 record high of $185, suggesting that its ongoing retracement could technically be a bull trap.

A convincing evidence comes from a 150% price rally in ETC between June 2021 and September 2021, which became a false recovery signal.

Interestingly, ETC’s ongoing price action appears to be similar to that seen in 2021, as shown on the daily chart below.

ETC/USD daily price chart. Source: TradingView

As in 2021, ETC has been consolidating in a range this year with support at the 0.236 Fib line (~$28.50) and resistance at the 0.382 Fib line (~$22.80). Likewise, the daily relative strength of the coin has been correcting from its “overbought” zone during price consolidation.

Related: This little-known DeFi crypto token is up over 800% in a month

Therefore, ETC is likely to continue to trade sideways in the $22.80 to $28.50 price range before falling towards the 0 Fib line near $13.65.

In other words, prices are down 50% from their July prices.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.

Coinmama

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