The price of Ethereum Classic reached its all-time high of 179.83 USDT on May 5, 2021, according to Binance. Then it began its retreat in the great fall of the cryptocurrency market until it touched the one-year low of 12.47 USDT on June 17, 2022.
However, unlike most altcoins, the subsequent rebound of the ETC price to $45 produced an amazing ROI of 200%. Although in the coming days, the Ethereum Classic token corrected again and this time up to $31.20. This correction was lower than the 20, 50 and 100 EMA.
Right now, we see on the chart the formation of the “rounded bottom” pattern and the break of the neck of said fund is around $40. The price shows a solid upward trend in the last day. However, a move below the $30 support would mean a reversal of the upside.
As we can see on the chart, the current price is between the 20 EMA and above the 50 and 100 EMA, which reaffirms this upward trend. But, the price of Ethereum Classic is facing resistance in the $38 zone. If this is overcome, the next resistance would be found at $40. While a movement above this figure could precede a further rally towards $45 and later to $50.
The other side of the coin for ETC price
As we mentioned, the main support is around $30, about 50% of the Fibonacci retracement level, from the rebound from its annual low. A move below $30 could mean a decline to the $25 support.
It is also worth noting that, despite the rebound of the last day, the price of Ethereum Classic is almost 80% below its all-time high. ETC needs to (at least) recover 40% of its value with respect to its ATH to generate greater confidence among long-term investors.
The large mining rewards of this network also make it susceptible to high volatility. It is necessary to analyze how such volatility will develop after Ethereum 2.0 and what role ETC will play there.
It should also be mentioned that on the weekly charts the ETC price shows the presence of a bearish weekly enveloping candle. Such a candle should not be ignored, although in such charts of the current day, the price is shown consolidated before it.
Will the price of Ethereum Classic reach $50?
In recent weeks, the price of Ethereum Classic has skyrocketed by up to 100% as “the Merge” approaches. Apparently, the update to Ethereum 2.0 favors the rise in the price of ETC. Since such an update will arrive in the middle of next month, ETC has enough time to consolidate at $50. However, before projecting ourselves towards this figure, we must take into account the factors mentioned in the previous analysis.
In favor of the future of this project, it is also worth mentioning its large army of developers and strong community. Personally, this one reminds me of Theta’s, which managed to consolidate a great project from scratch and in just a couple of years, thanks to the effort of its community.
What there is no doubt is that Ethereum Classic is growing and another figure that we can use to account for this is the increase in its hashrate:
Last Sunday it was recorded that the Ethereum Classic hasrate reached an all-time high of 38,37 TH/s. Such growth was 39.44% and it happened in just four days.
Important: The previous post is an exclusive appreciation of its author, its intention is to inform and not to serve as a guide for the purchase or sale of digital assets. Cryptocurrencies represent high-risk investments, get professional advice before investing in them.