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Ethereum Classic Pumps 38%, The Merge Underpins Crypto Coins

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Ethereum Classic Price Chart
Ethereum Classic Price Chart

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Ethereum Classic extended its winning streak and bid well at around $26.00. ETC experienced exponential gains after regaining its long-term support area near the $13 level. The price of Ethereum Classic has risen by more than 12% in a single day. However, its upward trend could be related to Merge’s scheduled to launch in September 2022. Before the merger, the price of Ethereum Classic could skyrocket. The Ethereum Merge event has been scheduled for September 2022, following the approval of a timeline by Ethereum core developers.

As the altcoin transitions from proof-of-work to proof-of-stake, the price of Ethereum Classic is expected to rise by 55 percent. Ethereum Classic’s current live price is $26.35, and its 24-hour trading volume is $1197 million. Ethereum Classic had increased by 38% in the previous seven days. ETC is ranked at number 22 with a live market cap of $3581 million. With a maximum supply of 210,700,000 ETC coins, there are currently 135,938,218 ETC coins in circulation.

Merge Scheduled for September 2022

As previously stated, its upward trend could be related to Merge’s scheduled to launch in September 2022. The gains came after Ethereum’s co-founder detailed his plans for future advancements at the Ethereum Community Conference in France, which went far beyond the network’s switch to proof of stake.

The project is known as “the merge” because it will connect the Ethereum mainnet to the proof-of-stake beacon chain. It should be noted that the Ethereum Foundation claims that this will make layer-2 blockchains more affordable, reduce the cost of rollups or bundled transactions, and make it easier for users to run nodes that protect the Ethereum network.

According to Buterin, the Ethereum network will process transactions more quickly once the surge is over.

Uncertainty in Crypto Market 

Despite numerous unfavorable reports, the cryptocurrency market has shown signs of life since the start of the week. This could be due to increased investor confidence and the volume of all cryptocurrencies due to the digital market’s increased awareness and adoption. Although the gains were fleeting, they could be related to reports that electric vehicle manufacturer Tesla sold approximately 75% of its Bitcoin (BTC) holdings.

As a result of the decline in the value of Bitcoin, market leaders who invested in it, such as Tesla, MicroStrategy, and Block, suffered losses of approximately $5 billion. These adverse developments had no significant impact on digital assets, including Ethereum Classic (ETC).

Ethereum Classic Technical Outlook

The ETC/USD coin is trading slightly higher after bouncing off the $12.88 support level. ETC has already completed 23.6 percent and 38.2 percent Fibonacci retracements at $22.20 and $28.65, respectively. Ethereum Classic is struggling to break through the $28.65 resistance level, and the coin is struggling to break through the $28.75 level.

On the weekly timeframe, however, the formation of bullish engulfing candles supports a buying trend. As a result, a breakout of the $28.65 level may open up additional buying opportunities until the $33.20 and $38.85 levels. The MACD and RSI are also pointing upward.

The 50-period EMA, on the other hand, may extend resistance near $39. The ETC/USD pair could find immediate support at $22.75 and $13.55. Consider a buy trade above the $22.20 level and vice versa. Good luck!

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