- Ethereum Classic price has gone parabolic in the past few days.
- This rally is mostly because of its correlation with Ethereum.
- Ethereum has jumped sharply ahead of the merge event.
Ethereum Classic price has been one of the best performing cryptocurrencies this week. Its ETC token surged to a high of $28, which was the highest level since May of this year. It has jumped by about 120% from its lowest level this year, bringing its total market cap to over $3.4 billion.
Why is ETC soaring?
Ethereum Classic price has surged in the past few days even though there have been no major news in its ecosystem. Therefore, this rally is mostly because of the on and off correlation between ETH and ETC. Besides, ETC was created after a hard fork of Ethereum.
Etherem has become the best-performing large-cap cryptocurrency in the past few days. It has risen by more than 42% in the past seven days. Most importantly, it has jumped from the year-to-date low of $800 to over $1,500.
Ethereum’s performance has been attributed to the strong performance of the blue-chip DeFi protocols in its ecosystem. Recently, most tokens like Aave, Uniswap, Compound, and Curve have jumped sharply.
This rally is mostly because investors believe that these platforms will continue doing well after the current crypto winter ends.
Further, Ethereum price is rising as investors cheer the upcoming merge event. In a statement last week, the platform’s developers said that they believe that the merger of the current proof-of-work platform and the Beacon Chain will happen in the third quarter.
Ethereum merge will be the biggest event in the blockchain industry this year because of the changes it will bring. For example, it will transition Ethereum from a proof-of-work (PoW) into a proof-of-stake (PoS). It will also make it possible for ordinary users to stake their coins.
Ethereum Classic will continue being a proof-of-work platform. This explains why it has not attracted as many developers like Ethereum.
Ethereum Classic price prediction
The daily chart shows that the ETC price has been in a strong bullish trend in the past few days. The coin has moved above the descending trendline that is shown in purple. It has also moved slightly above the 25-day and 50-day moving average while the Relative Strength Index (RSI) has moved above the overbought level.
Notably, the coin has formed what looks like a head and shoulders pattern. Therefore, there is a likelihood that it will resume the bearish trend in the next few days. If this happens, the next key support will be at $20.
