Ethereum Classic (ETC) cost rallied on Sept. 5 on back-to-back positive reports concerning its adoption among crypto miners.
Top mining pool supports Ethereum Classic
Around the daily chart, ETC’s cost surged 14.5% to almost $37.25 per token. Its massive gains came days after BTC.com, a blockchain explorer and crypto mining pool, launched a specialized Ethereum Classic pool with “zero-fee” mining for 3 several weeks.
The announcement made an appearance after “the Merge,” a lengthy-anticipated network update that will switch Ethereum’s energy-intensive proof-of-work (Bang) protocol to some “cost-efficient” and scalable alternative, the proof-of-stake (PoS), on Sept. 19 or before.
However the change to PoS can make Ethereum’s Bang miners futile. However, Ethereum Classic, the initial form of Ethereum, which still uses Bang, turn into a haven for that miners impacted by the Merge.
The network has already been attracting Bang miners en masse, confirmed by its hashrate, which touched an archive a lot of 41.81 Terrahash per second (TH/s) on Sept. 4. For that unversed, hashrate is the total computational power accustomed to mine and process transactions on the Bang blockchain.
This migration helps ETC rally incredibly in recent several weeks it’s up 200% since mid June.
ETC cost could rise another 60%
Theoretically speaking, Ethereum Classic looks prepared to undergo a circa 60% cost rally in September.
Particularly, ETC’s cost has created a “bull flag” in recent days. Bull flags appear once the cost consolidates lower following a strong upward trend. Meanwhile, they resolve following the cost breaks out in direction of its previous trend and therefore are thus considered bullish continuation patterns.
By Sept. 5, ETC tested its bull flag’s upper trendline for any potential breakout move. Imagine that the token will it. Then, its probability of rising further is going to be greater. Also, usually of technical analysis, the cost could rise up to the prior uptrend’s length, as proven below.
Quite simply, the ETC bull flag’s profit target involves attend around $58.50, up almost 60% from Sept. 5’s cost.
Related: ETH Merge: CoinGecko co-founder shares technique for forked tokens
On the other hand, a decisive break underneath the bull flag’s lower trendline risks invalidating the upside setup described above.
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