Ethereum Classic Records 12% Rally as Mining Support for ETC Accelerates

The price of Ethereum Classic (ETC) rose on September 5 following consecutive positive reports regarding its adoption by crypto miners.

Top mining pool supports Ethereum Classic

On the daily chart, ETC’s price surged 14.5% to near $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 “no-fee” mining for three months.

ETC/USD daily price chart. Source: Trading View

The announcement came after “the merge,” a long-awaited network update that would transition Ethereum’s energy-intensive proof-of-work (PoW) protocol to a “cost-effective” and scalable alternative, proof-of-stake (PoS). ), on or before September 19.

But the move to PoS will make Ethereum’s PoW miners unnecessary. On the other hand, Ethereum Classic, the original version of Ethereum, which still uses PoW, could become a haven for miners affected by the merger.

The network is already attracting PoW miners in droves, confirmed by its hashrate, which reached a record high of 41.81 Terrahash per second (TH/s) on September 4. For the uninitiated, hashrate is the total computing power used to mine and process transactions on a PoW blockchain.

Ethereum Classic hash rate. Source: CoinWarz

This migration has helped ETC rally incredibly in recent months; it is up 200% since mid-June.

ETC price could rise another 60%

From a technical standpoint, Ethereum Classic looks poised for a ~60% price rally in September.

Notably, ETC price has formed a “bullish flag” in recent weeks. Bullish flags appear when the price consolidates after a strong uptrend. Meanwhile, they resolve after the price breaks out in the direction of its previous trend and are therefore considered bullish continuation patterns.

On September 5, ETC tested the upper trendline of its bull flag for a possible breakout move. Suppose the token does. Then its probability of increasing further will be higher. Also, as a general rule of technical analysis, the price could rise as much as the duration of the previous uptrend, as shown below.

ETC/USD daily price chart with “bullish flag” breakout pattern. Source: Trading View

In other words, the profit target for the ETC bull flag is around $58.50, up almost 60% from the September 5th price.

Related: ETH Merge: CoinGecko Co-Founder Shares His Forked Token Strategy

Conversely, a decisive break below the lower trendline of the bull flag risks invalidating the bullish setup explained above.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

About Marcia G. Hussain

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