Ethereum Classic (ETC) has outperformed its major rival, Ethereum’s native token, Ether (ETH) during the current cryptocurrency market rebound, with ETC/ETH pairs hitting 10-month highs.
Why does ETC beat ETH?
The price of ETC hit $27 on July 22, a 100% gain in nine days after peaking at $13.35. In comparison, the price of ETH saw a 64% rise in US dollars.
Ethereum’s rebound was one of the strongest among major cryptocurrencies, mainly due to the euphoria surrounding its potential network upgrade in September.
baptized” the MergerWith this long-awaited technical update, Ethereum will move from proof-of-work (PoW) to proof-of-stake (PoS).
There is no price in crypto, especially an event as complex and unprecedented.
But if I were a betting man, I would say $ETH Goes up before Merge, drops on Merge (unlocked bases), then goes
— Jeremy Gardner (@Disruptepreneur) July 21, 2022
Everyone who believes the #Merge of #Ethereum will drive up the price is smoking crack. Nothing is taken for granted in cryptocurrency, especially an event as complex and unprecedented. But if I were a pro, I would say $ETH rises before the Merger, falls on the Merger (unlocked coins), then rises. — Jeremy Gardner (@Disruptepreneur) July 21, 2022.
Also, it will replace miners with stakes. Therefore, the change to PoS may force existing Ethereum miners to switch to PoW chains.
Not surprisingly, Ethereum Classic is closest to Ethereum in terms of network design and compatibility, as Ethereum Classic is the legacy chain that was split from Ethereum after a controversial hard fork in July 2016.
Speculators therefore expect Ethereum Classic to be the first choice for miners migrating from Ethereum, and this is probably one of the main reasons for the recent rise in the price of ETC.
#ETC that is just pumping. It has a FIXED monetary policy! It is programmed! Yes all Dapps on #ETH can run on $ ETC. After the #ETH 2.0 merge, miners like myself will call #EthereumClassic home Retweet for CodeIsLaw! pic.twitter.com/sABGc72NUk
— Patient Money (@MoonTigerSt) July 19, 2022
#ETC doesn’t just pump. It has a FIXED monetary policy! It is programmed! Yes, all Dapps on #ETH can run on $ETC. After the #ETH 2.0 Consolidation, miners like me will call #EthereumClassic home. Retweet for CodeIsLaw! pic.twitter.com/sABGc72NUk — Patient Money (@MoonTigerSt) July 19, 2022.
Short-term ETC price technical data is bearish
From a technical perspective, Ethereum Classic broke down under pressure from the 200-day exponential moving average (200-day EMA; the blue wave in the chart below) near $27.35
The ETC/USD pair saw a strong bearish rejection near wave resistance on July 19, confirmed by the biggest spike in its daily trading volume in almost a year. Also, the rejection came after testing the 0.382 Fib line at around $27.47 as resistance.
Also read: All ‘Ethereum Killers’ will fail: Blockdaemon’s Freddy Zwanzger.
The ETC is now consolidating within the $22-25 price range, with a tentative bias to the downside due to an “overbought” Relative Strength Index.
ETC expects to fall to its 50-day EMA (the red wave) near $19 if it breaks firmly above the $22 mark, a drop of more than 25% from the July 22 price.
Conversely, a successful break above $25 and the 200 day EMA could allow the ETC price to break above $30.
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