• Ethereum Classic price is at make-or-break juncture with break above the 50-day SMA reaching $50 and $80, respectively.
  • A bullish MACD and support provided by the 100-day SMA uphold ETC’s long-term bullish stance.
  • Ethereum Classic price is not entirely out of danger, especially if it gets rejected from the 50-day SMA.

Ethereum Classic price performed exceptionally well over the last 30 days, netting returns of up to 153%. The chief reason for this rally has everything to do with Ethereum’s much-awaited switch from a miner-oriented protocol called proof-of-work (PoW) to an environmentally-friendly consensus algorithm known as proof-of-stake (PoS).

What does the Ethereum merge mean for Ethereum Classic price?

As previously covered, Ethereum miners will find themselves at crossroads when the merge takes place In September. They will have two viable options; to sell their equipment or migrate to another similar blockchain Like Ethereum Classic and continue their mining operations.

Miners are already showing interest in Ethereum Classic with Antpool, one of the biggest mining pools, pledging $10 million in support of its ecosystem. The co-founder of Ethereum, Vitalik Buterin, affirmed that miners were okay to switch to the original Ethereum protocol.

Outwardly, this may seem optimistic for Ethereum Classic price, but the question among investors is whether the uptrend has the potential to continue. It is essential to factor in a long-standing crypto narrative of buying the rumor and selling the news. For example, Bitcoin price briefly rallied to its all-time high in November when the Security and Exchange Commission (SEC) approved the first BTC futures exchange-traded fund (ETF). However, investors sold the news as Bitcoin price tumbled, leaving little to be desired in 2022.

Investors and analysts fear the same thing may happen to Ethereum Classic. However, our analysis shows that ETC is unlikely to give up much of the accrued gains. This insight does not rule out minor dips south of the resistance at $40.

ethereum classic price

ETH/USD weekly chart

A thorough analysis of the weekly chart places Ethereum Classic price on top of a robust anchor provided by the 100-day Simple Moving Average (SMA). At the same time, the Moving Average Convergence Divergence (MACD) vividly spots a buy signal.

A defining moment awaits Ethereum Classic price at the 50-day SMA, which coincides with the descending parallel channel’s upper boundary. If Ethereum Classic price confirms a real break above this zone, investors may acclimatize to higher highs at $50 and $80, respectively.

However, if the impediment at the 50-day SMA holds, it would be prudent to consider a downside scope of $22. Remember, crypto markets mainly run on emotions. Hence, continued signs of weakness would see Ethereum Classic price seek reprieve at $14.50 – the channel’s lower boundary.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis