Ethereum Classic (ETC) continues to benefit from its blockchain rival Ethereum’s upcoming transition from proof-of-work (PoW) to proof-of-stake (PoS).
Vitalik Buterin Loves Ethereum Classic
Notably, ETC’s price rose just over 20% to reach $27.50, two days after Ethereum co-founder Vitalik Buterin’s approval of Ethereum Classic went viral through social media. In his comments, Buterin presented the chain as a “fine” PoW alternative to Ethereum.
The statements came amid fears that Ethereum’s potential network upgrade in September will force PoW miners elsewhere.
In other words, they would look for alternative PoW networks to ensure their installations remain functional. That could benefit Ethereum Classic as it is the original version of Ethereum and could therefore guarantee an easy migration for miners.
ETC technical outlook
Impressively, the ETC price is up more than 120% since mid-June, making it the standout last month. Nevertheless, it is still down more than 85% from its record high of $185 in May 2021, suggesting that the ongoing retracement move could technically be a bulltrap.
Compelling evidence comes from ETC’s 150% price recovery between June 2021 and September 2021, which turned out to be a false recovery signal.
Interestingly, ETC’s ongoing price action appears similar to that seen in 2021, as illustrated in the daily chart below.
As in 2021, ETC this year is consolidating within the range defined by its 0.236 Fib line (~$28.50) as support and 0.382 Fib line (~$22.80) as resistance. Similarly, the token’s daily relative strength corrected from its “overbought” territory during price consolidation.
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Therefore, ETC could continue to move sideways in the $22.80-$28.50 price range, followed by a breakdown to the 0 Fib line near $13.65.
In other words, a 50% drop in price from the current price.
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