After ignoring numerous bearish calls, is the Ethereum Classic price set for another 85% move?

Ethereum Classic price continues to face headwinds in the wake of a gigantic rally that saw its value triple in July. Many analysts and market participants have made bearish calls, implying that the ETC rally has been exhausted. However, Ethereum Classic price appears strong above a newly formed support at $40.00.

The merge remains bullish for Ethereum Classic price

Anticipation continues to build across the cryptocurrency market for the upcoming Ethereum merge. Ethereum Classic price was an early beneficiary of the event that will see the largest smart contracts platform transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus. The token hit a four-month high of $44.27 on August 11.

As the merge draws nearer, miners in the Ethereum ecosystem are expressing interest in Ethereum Classic because they will no longer mine ETH post the merge. The move to Ethereum Classic will allow them to continue with their mining activities.

However, many remain skeptical of the merge’s influence on the Ethereum Classic price rally. Akash Girimath, an analyst with FXStreet, discusses the merge effect on ETC as well as when to get out.

For now, Ethereum Classic price is exchanging hands at $41.86 while holding slightly above an ascending channel’s lower boundary. Its recent break above $40 made it clear that ETC is not done with the uptrend.

The Stochastic RSI’s bullish divergence adds credence to the anticipated move to $80.00. Ethereum Classic price will face the most challenging task at $52.00 – a seller congestion area that triggered a multi-month downtrend in late March. With this resistance behind ETC, all the attention will shift to $80.00.

ETH/USD daily chart

The Ethereum Classic price rally has been reinforced further by a buy signal presented by the Super Trend indicator on the same daily chart. As long as this technical index trails the price, odds will favor Ethereum Classic price imminent move to $80.00.

Investors should be mindful of their decisions now because some miners are already discussing a hard fork on the Ethereum blockchain. Chandler Guo, a renowned Chinese crypto figure, recently said he is ready to fork Ethereum to create ETHPOW. Such a move could quickly redirect attention from Ethereum Classic and cut short the rally.