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Ethereum Classic (ETC) Price Surges as Ethereum Miners Flock in Anticipation of the Merge

2 mins
Updated by Geraint Price
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In Brief

  • ETC's mining difficulty and hash rate are at all-time highs
  • ETC has broken out from a descending wedge
  • There is resistance at $45
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Ethereum Classic (ETC) has broken out from a short-term pattern and is approaching a crucial resistance area at $45.

The ETC hash rate reached yet another new all-time high on Tuesday. One of the reasons for this is the migration of miners from ETH to ETC due to the switch of Ethereum from proof-of-work to proof-of-stake.

Ethermine also offers the ETC mining pool, so it is easier for miners to transfer to this pool. Since Ethereum classic was first created after a split in the ETH ecosystem as a result of differing responses to the DAO hack, there have now been renewed calls to support the ecosystem and help it gain traction. 

The increase in hash rate has in turn caused an increase in mining difficulty, which is also at an all-time high. This is an inherent mechanism that serves to balance mining rewards.

ETC breaks out

ETC had been decreasing since reaching a high of $45.70 on Aug 13. The downward movement has initially contained inside a descending wedge. 

However, the price broke out on Sept 5 and increased by 22.60% the same day, creating a large bullish candlestick.

At the same time, the daily RSI broke out from its descending resistance line. This in turn grants legitimacy to the breakout and suggests that the price will continue increasing. If so, the closest resistance area would be at $45.

ETC is also at the resistance line of a long-term pattern. Thus, an increase above the $45 resistance area would also cause a breakout from the aforementioned long-term pattern. 

ETC daily movement
ETC/USDT Chart By TradingView

Wave count analysis

The wave count also supports the continuation of the upward movement. The most likely count indicates that ETC has completed a five-wave upward movement (white) and an A-B-C correction afterwards.

If the count is correct, it would mean that the price initiated a bullish trend reversal on June 18. 

A decrease below the wave C low at $30.34 (red line) would invalidate this count while an increase above the wave B high at $45.71 (green line) would confirm it. 

ETC Count
ETC/USDT Chart By TradingView

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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