The Merge update of Ethereum will influence the price of Ethereum Classic because ETH will become an energy-intensive protocol with a Proof of Stake mechanism. Now Ethereum does not need miners to verify transactions, which means the miners of Ethereum may migrate to Ethereum Classic with a minor investment. Thus, the ETC price may witness a bullish rally.
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Ethereum Classic is an open-source, decentralized platform that runs on smart contracts and Proof of Work consensus. It is an older version of Ethereum, and the smart contracts run on autonomous digital applications known as the ‘Code of Law.’ It is primarily used to pay gas fees on the Ethereum network and can be treated as an asset because of its predictable, disinflationary nature with a fixed market cap.
The purpose of this project is to create a global payment network based on smart contracts that do not depend on any middleman or central authority. However, it is a risky asset in the long term. So, before investing, make sure you read our ETC price prediction.
At the time of writing this analysis, the price of Ethereum Classic was trading around $25.9, which is above the resistance level of $25. That means there is a chance of breakout, and ETC may go up to $33. However, it has formed a reverse hammer which suggests a downtrend.
Most of the technical indicators are bullish. RSI is in the overbought zone, MACD is forming green histograms, and candlesticks are on the upper half of the Bollinger Bands. All these technical indicators suggest short-term bullishness but should you invest for the short term? We suggest not to invest until it forms another bullish engulfing candle.
On the weekly chart, RSI is stable around 498, and MACD is all seat to form a bullish pattern; candlesticks are around the baseline of the Bollinger Bands. That means you should invest when ETC crosses $30. After that, it may go up to $47, with a support of $25.
Based on the price and technical indicators, you can invest in Ethereum Classic for the long-term, but it is not the ideal time for the short-term investment because it may come to the level of $15 or below.
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