Ethereum Classic books 12% rally as mining support for ETC gains pace

Ethereum Basic (ETC) value rallied on Sept. 5 on back-to-back optimistic stories regarding its adoption amongst crypto miners.

High mining pool helps Ethereum Basic

On the each day chart, ETC’s value surged 14.5% to almost $37.25 per token. Its large good points got here days after, a blockchain explorer and crypto mining pool, launched a specialised Ethereum Basic pool with “zero-fee” mining for 3 months.

ETC/USD each day value chart. Supply: TradingView

The announcement appeared after “the Merge,” a long-awaited network update that might change Ethereum’s energy-intensive proof-of-work (PoW) protocol to a “cost-efficient” and scalable different, the proof-of-stake (PoS), on Sept. 19 or earlier than.

However the change to PoS will make Ethereum’s PoW miners futile. Then again, Ethereum Basic, the unique model of Ethereum, which nonetheless makes use of PoW, may change into a haven for the miners affected by the Merge.

The community is already attracting PoW miners en masse, confirmed by its hashrate, which touched a file excessive of 41.81 Terrahash per second (TH/s) on Sept. 4. For the unversed, hashrate is the whole computational energy used to mine and course of transactions on a PoW blockchain.

Ethereum Basic hashrate. Supply: CoinWarz

This migration has helped ETC rally extremely in latest months; it’s up 200% since mid June.

ETC value may rise one other 60%

From a technical perspective, Ethereum Basic seems able to endure a circa 60% value rally in September.

Notably, ETC’s price has formed a “bull flag” in recent weeks. Bull flags appear when the price consolidates lower after a strong uptrend. Meanwhile, they resolve after the price breaks out in the direction of its previous trend and are thus considered bullish continuation patterns.

As of Sept. 5, ETC tested its bull flag’s upper trendline for a potential breakout move. Suppose the token does it. Then, its likelihood of rising further will be higher. Also, as a rule of technical analysis, the price could rise by as much as the previous uptrend’s length, as shown below.

ETC/USD daily price chart featuring ‘bull flag’ breakout setup. Source: TradingView

In other words, the ETC bull flag’s profit target comes to be at around $58.50, up almost 60% from Sept. 5’s price.

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Conversely, a decisive break beneath the bull flag’s decrease trendline dangers invalidating the upside setup defined above.

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