Ethereum Classic Price is up over 250% in July ahead of the Merge, What’s Next?

Key Takeaways:

• Ethereum Classic price rallied by more than 200% in July to mark the highs at around $45.36 
• While the asset managed to surge by nearly 20% since the beginning of the current trading month
• The ETC price has flipped from the lows close to $32 and utilizing all its resources to resume a firm upswing

What fueled the Ethereum Classic Rally in the Month of July?

 The ETC price displayed a significant & sudden upswing in July as the Merger of Ethereum’s PoS event approached. The price rally was followed immediately after AntPool, which is a giant mining rig, announced a hefty $10 million investment to support the Ethereum Classic ecosystem. 

The Price of ETC almost doubled after the revelation of the Merger date. Moreover, as per some reports, the Ethereum miners shifted to Ethereum Classic in large numbers, increasing the hash rate of the protocol. This could certainly increase the security of the Ethereum Classic network. 

Additional Read: Top Crypto News: Goerli Coming Soon!

Ethereum Classic Technical Analysis

Ethereum Classic price appears to be pretty bullish as the price movements appear to have formed a bullish pattern. The asset witnessed a significant rise in the trading volume in the past 10 to 12 days which enabled the price to soar by nearly 200%.

Currently, the price is consolidating within a narrow range but displays a huge probability of ranging high with soaring numbers. 

Source: Tradingview

• The ETC price after undergoing an extended descending trend for more than a couple of months has now reversed the trend to surge high
• The asset rebounded firmly and consolidated forming a bullish flag which further broke above and smashed the immediate resistance close to $44
• However, the price is currently facing a minor pullback which again indicates the formation of another bull flag
• Once the asset breaks out from the consolidation, the price may range high to hit the initial target at around $50

Additional Read: Ethereum Merge Update

Vitalik Burentin On Ethereum Classic

Vitalik Buterin during the recently held Ethereum Community Conference in Paris spoke about the upcoming and important phase of ETH 2.0, the Merger. He highlighted the specifications and the importance of the event and also shed some light on the performance of the Ethereum protocol after the merger. 

During addressing the community, Vitalik Buterin expressed his support for the original Ethereum Classic chain which would continue to work on the Proof-of-0Work mechanism. He clarified that the PoS transition will not end the existence of the PoW mechanism and hence the miners can shift to the original chain. 

“There are plenty of blockchains like there is the Ethereum Classic, which is the original Ethereum….they are a very welcoming community…if you like Proof-of-Work, you can go and use Ethereum Classic. It is a totally fine chain,” he said. 

Ever since then, the ETC price began to rise high and doubled its price in a very short time. 

Will the Miners find a New Home in Ethereum Classic After Merge?

Ethereum Classic’s price rose massively by more than 150% in the last few days of July which almost doubled its price. The asset quickly became the top performing asset as the activity over the platform rose by 2x to 3x. However, the minor bull run began when the ETH Merger date was announced. 

This came out to be troublesome for the Ethereum miners who smelt the possibility of getting pushed out of the network. Mainly due to the reason that miners will have no job after the merger as the Ethereum platform could transit into the PoS mechanism, the hunt for an alternative began.

That’s when Ethereum Classic came into the picture clearly stated to continue with the Proof-of-Work mechanism. Also, the mentions from the Ethereum co-founder Vitalik Buterin fueled the rally. Miners quickly shifted to ETC and hence the platform witnessed a huge spike in the hash rate which in turn escalated the price by nearly 200%. 

Source: Messari.io

Ethereum Classic Price Prediction: Will ETC reach $100 in 2022?

Ethereum Classic price ever since broke down from the highs in May 2021, traded within a descending channel. Despite a couple of possible upswings, the price remained heavily undervalued which failed to break the upper resistance, hence facing a rejection. 

Currently, the ETC price appears to have gained huge bullish momentum in the past fortnight which may assist the price to reach the initial target at $50.

The ETC price in the coming days is expected to consolidate heavily close to $50 resistance levels and by the end of August could trade around $55. Maintaining a similar bullish momentum, the asset may close the Q3 trade at around $60 to $62. 

Heading towards the final quarter, the ETC rally may get intensified and range beyond $75 and by the end of 2022, may trade above $94, but fail to hit $100. 

Additional Read: Ethereum Classic Price Prediction

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