The price of Ethereum Classic (ETC) increased on September 5 after back-to-back positive reports regarding its adoption by cryptocurrency miners.
The best mining pool supports Ethereum Classic.
On the daily chart, the price of ETC jumped 14.5% to almost $37.25 per token. The massive gains came days after BTC.com, a blockchain-related service provider and cryptocurrency mining pool, launched a specialized Ethereum Classic pool with “fee-free” mining for three months.
This news comes on the heels of “the Merge”, a much-anticipated network update that plans to replace Ethereum’s energy-intensive POW (proof-of-work) protocol with a “cost-effective” alternative and scalable, PoS (proof of work). question), on or before 19 September.
But switching to PoS will render PoW Ethereum miners useless. On the other hand, Ethereum Classic, the original version of Ethereum, which still uses PoW, could be a haven for miners affected by the Merger.
The network is already attracting PoW miners in droves, as confirmed by its hash rate, which reached an all-time high of 41.81 terahasshes 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 blockchain.
This migration has enabled ETC to gain an incredible rally in recent months; it has gained 200% since mid-June.
The price of ETC could rise another 60%
From a technical perspective, Ethereum Classic looks set for a ~60% rally in September.
In particular, the price of ETC has formed a “bull flag” in recent weeks. Bullish flags are seen when the price consolidates lower after a strong uptrend. They reverse after the price breaks towards the previous trend and are therefore considered bullish continuation patterns.
On September 5, the ETC tested the upper trendline of its bull flag for a possible breakout move. Say the sign achieves this. Then, the probability that it will increase further will be higher. Also, according to the rule of technical analysis, the price could increase as much as the duration of the previous uptrend, as shown below.
In other words, the ETC bull flag profit target sits around $58.50, up nearly 60% from the September 5 price.
Also read: ETH merger: CoinGecko co-founder shares his strategy for forked tokens
Conversely, a decisive break below the lower trendline of the bull flag risks invalidating the bullish setup explained above.
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