YEREVAN (CoinChapter.com) – ETC, the in-house token of Ethereum Classic, a 2016 blockchain hard fork from the Ethereum Network, traded at $43 in Tuesday’s European session, after an explosive 70% weekly rally. The digital asset broke a significant resistance that hindered its upside moves since Sep. 2021.
In detail, the said resistance was a part of a bullish formation dubbed the Falling Wedge. The latter entails converging trendlines that gradually reduce the price swing and drop the asset’s value. However, the Falling Wedge predicts a bullish phase after the token breaks the resistance.
Moreover, due to the surge, ETC registered a Golden Cross on the daily chart. In detail, the setup occurs when a short-term exponential moving average (EMA) crosses above a long-term EMA, forecasting a bullish period ahead for as long as the dominance stands.
For example, ETC’s Golden Cross occurred between the EMA-20 (red wave) and EMA-50 (orange wave) on Mar. 20.
However, the daily chart flashed several warnings as well. For example, the token’s relative strength index (RSI) shot into the ‘overbought’ territory, typically waving a bearish flag. In detail, the RSI is a momentum indicator that signals an unreasonably high or overbought price when it charts over 70.
Subsequently, some traders could pull their bets expecting a sell-off and cause a price decline.
Miners migrating to Ethereum Classic?
Sources report that Ethereum’s determination to phase out mining on the blockchain and replace it partially with staking might have attracted miners to the Ethereum Classic network. ETC Sage Capital, an Ethereum Classic-focused hedge fund, agreed. It announced that a mass migration of miners is behind ETC’s price uptrend.
Miners are starting to migrate to #ethereumclassic$etc in mass and in scale. The next 6-8 months are going to get intense. Price wise and hash rate. #etchash#proofofwork algorithm. Secured #etc to ATH of $178 and soon beyond $1000. Get ready. #Bitcoin
It is still early to say if the heightened interest in Ethereum Classic would last. However, the digital asset pushed its way into the top 10 smart contract platforms by market cap. The latter stood at $5.8 billion on Mar. 22.
Additionally, Ethereum Classic’s upcoming block reward halving might have triggered the latest rally. Simply put, it is the process of halving the mining rewards after each set of blocks is mined.
The halving process limits the supply of new coins by reducing mining rewards. Thus, prices could rise if demand remains strong. The exact time of the halving was delayed due to a slowdown in block production. But the team behind ETC expects the event at some point in March.
Lilit is a Yerevan-based Markets writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience.
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