Ethereum Classic soars 100% in nine days outperforming ETH as ‘the Merge’ approaches

Ethereum Traditional (ETC) has been outperforming its arch-rival Ethereum’s native token Ether (ETH) in the course of the present crypto market rebound with the ETC/ETH pairs at 10-month highs.

Why is ETC beating ETH?

ETC’s value has risen to $27 on July 22, amounting to a 100% acquire in 9 days after bottoming out at $13.35. Comparatively, ETH’s value has seen a 64% rally in U.S. greenback phrases.

Ethereum’s rebound has been among the many sharpest among the many prime cryptocurrencies, primarily because of the euphoria surrounding its potential network upgrade in September.

Dubbed “the Merge,” the long-awaited technical update will swap Ethereum from proof-of-work (PoW) to proof-of-stake (PoS).

Anybody who believes the #Ethereum #Merge is priced in is smoking crack.

Nothing is priced-in in crypto, particularly an occasion as convoluted and unprecedented as this.

However If I have been a betting man, I’d say $ETH goes up previous to Merge, drops on Merge (unlocked cash), then goes

— Jeremy Gardner (@Disruptepreneur) July 21, 2022

Furthermore, it should change miners with stakers. Because of this, the PoS swap may pressure current Ethereum miners to modify to PoW chains.

Unsurprisingly, Ethereum Traditional is the closest to Ethereum when it comes to community design and compatibility as a result of Ethereum Traditional is the legacy chain split from Ethereum following a contentious onerous fork in July 2016. 

Speculators are thus anticipating Ethereum Traditional to change into the primary alternative for miners migrating from Ethereum, and that is seemingly one of many primary causes ETC’s current value surge. 

#ETC is not only pumping. It has a FIXED financial coverage! It’s programmable! Sure all Dapps on #ETH can run on $ETC. After the #ETH 2.0 merge, miners like myself will name #EthereumClassic house. Retweet for CodeIsLaw! pic.twitter.com/sABGc72NUk

— Affected person Cash (@MoonTigerSt) July 19, 2022

ETC value technicals lean short-term bearish

From a technical standpoint, Ethereum Traditional has been reeling below the stress of its 200-day exponential shifting common (200-day EMA; the blue wave within the chart beneath) close to $27.35.

ETC/USD has witnessed a powerful bearish rejection close to the wave resistance on July 19, confirmed by the most important spike in its each day buying and selling quantity in virtually a yr. As well as, the rejection got here after testing the 0.382 Fib line at round $27.47 as resistance.

Associated: All ‘Ethereum killers’ will fail: Blockdaemon’s Freddy Zwanzger

ETC now consolidates contained in the $22–$25 value vary with its interim bias skewed towards the draw back resulting from an “overbought” relative strength index (RSI).

ETC eyes a decline towards its 50-day EMA (the pink wave) close to $19 if it decisively breaks beneath $22—over 25% decrease than July 22’s value.

Conversely, a profitable break above $25 and the 200-day EMA may have ETC’s value rally over $30.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you need to conduct your individual analysis when making a choice.