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Ethereum Classic Aims at $38 as Rally Doesn't Seem to Cool Off

Wed, 07/27/2022 - 12:24
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Arman Shirinyan
"PoW migration" from Ethereum might help some coins like Ethereum Classic massively
Ethereum Classic Aims at $38 as Rally Doesn't Seem to Cool Off
Cover image via stock.adobe.com

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Contents

We have already covered the role of Ethereum Classic in the cryptocurrency industry after which the PoW consensus algorithm will no longer be available for Ethereum. While the initial rally was purely speculative, so is the following reversal. Ethereum Classic will most certainly grow ‌as more miners migrate to it.

Technical breakout incoming?

ETC reached an important local resistance level reflected in the 200-day moving average, which is necessary to break to enter the uptrend that assets have not seen since August 2021.

ETC Chart
Source: TradingView

Even the great bull market of 2021 could not help Ethereum Classic as demand for the "alternative version of Ethereum" was falling gradually, considering its lack of usability at that time, in contrast to Ethereum, which acts as a main driver of any altcoin rally.

With Ethereum Classic becoming the most likely successor of the Ethereum hashrate, investors see it becoming more actively developed in the future, which may lead to an increase in the network's revenue.

ETC levels to watch out for

If the market sees a successful breakout in the upcoming days, ETC will start "looking" for the next resistance level, which is purely psychological and located at around $30. During Ethereum Classic's most recent attempt to break above $30, bears pushed the asset down and caused a plunge to $13, which is the lowest point for ETC since March 2021.

Related
3 Reasons Not to Give Up on Ethereum Recovery Despite Plunge Below $1,500: Crypto Market Review, July 26

The next major resistance on the chart is a 50-week moving average, which ETC successfully crossed only once in the last 20-week period. As of now, investors in the token should watch the 200-day EMA level closely as it will determine the movement for Ether Classic for the next few days or even weeks.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.