The entire crypto community is bullish on the Ethereum Merge update, which will make Ethereum eco-friendly. However, the miners spend thousands of dollars on starting their mining business, so they will find a suitable alternative in Ethereum Classic, which has been running on Proof of Work consensus. As a result, the community noticed that ETC had been pumping in the last two months before the Merge upgrade on Ethereum’s main net.
After the release of Ethereum in 2015, a third party hacked the DAO project, which was one of the first decentralized projects on an open-source venture fund. The system was new and vulnerable, so it lost millions of dollars. As a result, Vitalik Buterin found a solution with a hard fork.
The Ethereum foundation created a new Ethereum chain, but many community members did not agree with the decision, and they chose to stay with the old chain, which is known as Ethereum Classic.
Ethereum mining is a billion-dollar industry, so miners will not sell their equipment if Ethereum runs on a Proof of Stake consensus. Indeed, it has put their livelihood at stake, so they try to find an alternative to generate their income.
However, many market experts suggest this uptrend is for the short-term, so long-term investors should not prefer Ethereum Classic in their portfolio. Please read our ETC price prediction before investing in keeping your money safe.
At the time of writing this post, ETC was trading around a range. The current price is $38.96, but $34 is a support, and if it follows the uptrend, it will face resistance at around $47.5. Indeed, it has been following an uptrend in the last few months because of the Ethereum Merge upgrade.
Experts believe the miners are taking long-term positions in Ethereum Classic, which will drive the price in the next few years. In the short term. MACD is neutral, but RSI is bullish, so you can take a trade with a target near immediate resistance.
In the long term, Ethereum Classic has taken support at around $30, but it has formed lower highs. It is forming a green bullish engulfing candle, but it is not the time for long-term investment because ETC has not formed higher highs.
It may fall further in the next few months, but based on the fundamental side, it should follow the uptrend. However, retail investors should enter when the ETC price moves past immediate resistance. Most technical indicators are bullish on the long-term chart, so you can accumulate the coin, but you should not invest a higher amount in ETC.