- Ethereum Classic has underperformed Bitcoin and other altcoins.
- ETC could benefit if the SEC concludes that Ethereum is a security.
- Litecoin price could benefit because of the upcoming halving event.
Ethereum Classic and Litecoin prices have moved sideways recently even as Bitcoin Cash surged. Litecoin was trading at $88 on Tuesday, a few points below the weekend high of $95. In all, the coin has jumped by 23% from the lowest point this month.
Ethereum Classic (ETC), on the other hand, was trading at $18.40, a few points above this month’s low of ~$12. These two altcoins have several catalysts that could push them higher in the next few months.
Litecoin halving and ETC status
Litecoin and Ethereum Classic prices will likely benefit from the recent Binance and Coinbase lawsuits by the Securities and Exchange Commission (SEC). Unlike other popular altcoins like MATIC and Cardano, LTC and ETC are proof-of-work coins.
The SEC and the CFTC have stated that Bitcoin is a digital commodity. Therefore, using the same argument, we can assume that it also believes that LTC and ETC are commodities as well. Most importantly, unlike Ethereum, they don’t have staking features. In Coinbase’s lawsuit, the SEC focused on staking, which guarantees returns for all tokens held.
In a statement last year, Gary Gensler claimed that he was concerned about Ethereum’s transition from proof-of-work to proof-of-stake. He argued that this transition and the staking element meant that ETH should be regarded as securities. Therefore, we can’t rule out a situation where the SEC adds ETH in the securities basket.
If this happens, Ethereum Classic price will likely benefit since it is a PoW platform that emerged from Ethereum’s hard fork. As such, some developers could decide to shift to the network. As we saw during the merge, ETC price tends to wake up when there is important Ethereum news.
The main upcoming catalyst for Litecoin price is the upcoming halving process that is scheduled for August. As I wrote here, LTC price tends to rally towards a halving process.
Ethereum Classic price prediction
The daily chart shows that ETC price has underperformed the market in the past few months. While BTC is holding near the YTD high, ETC is sitting 27% below the highest level this year. Most recently, it has moved above the 50-day moving average, which is a bullish sign. Ethereum Classic has also moved above the important support level at $16.15, the lowest level on March 10th.
Therefore, there is a likelihood that the price will continue rising as buyers target the year-to-date high of $25, which is about 35% above the current level. A move below the support at $16.15 will invalidate the bullish view.
Read more: How to buy Ethereum Classic.
Litecoin price prediction
Litecoin has made a steady recovery after crashing to a low of $71.17 earlier this month. It has now jumped to $87.47. Like ETC, the price is above the 50-day moving average. The coin has also formed what looks like a small falling wedge pattern.
Therefore, there is a likelihood that the coin will have a bullish breakout as buyers target the important psychological level at $100. This view will be confirmed if it moves above the descending trendline that connects the highest point since February this year.
Read more: How to buy Litecoin.
