The "merger" forced investors to pay attention to Ethereum Classic
Over the weekend, the price of Ethereum Classic increased, adding an impressive 47%. The reason for this success may be the transition of Ethereum miners to Ethereum Classic, which is associated with the upcoming update of The Merge network ("Merge").
Ethereum, the second largest cryptocurrency by market capitalization, should move from Proof-of-Work (PoW) to Proof-of-Stake (PoS) through the aforementioned network upgrade. And although this update has been postponed many times, recently a consultant on the state of the Ethereum Beacon Chain network wrote that a hard fork could happen on September 19.
Despite numerous delays, miners are already trying to reduce risks and are probably switching to other PoW coins. Thus, the Arweave decentralized storage coin has shown a 37 percent surge in hashrate over the past week. Ethereum Classic, a close relative of Ethereum with a slightly different mining algorithm, also recorded a 41% increase in hashrate.
If other PoW coins have serious limitations for the work of Ethereum miners, then a minor firmware update may allow them to effectively mine Ethereum Classic, which will inevitably increase the price of this cryptocurrency.
At the moment, ETC has already grown by 56% since July 13, and technical settings indicate that further growth is expected. At the current price of $22.32, investors can expect a breakdown of the 50-day exponential moving average (EMA) with a further resistance test at $32.62.
This jump will be an increase of 54%, and probably a local peak will form there. Its transformation into support will pave the way for retesting the range high at $52.72 with potential pit stops at $34.21 and $48.70.
If ETC closes the daily candle at $12.5, the bullish scenario will be canceled and in this situation, the price of Ethereum Classic may return to the support level of $ 10.44.
https://coin-signal.com/cryptonews/the-merger-forced-investors-to-pay-attention-to-ethereum-classic/
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