- how ethereum merge is triggering a rally in ethereum classic
- etc has managed to rally almost 150% while eth has only achieved 58% in the same time period
- how ethereum classic can benefit from ethereum migration
in important news that we have already covered, ethereum launched its 10th shadow fork on july 27, 2022. the process was supposed to go live on july 28, 2022, however the event was held to out for 26 hours. early! Now, this move sent the token up over 15% on the morning of July 28, currently trading over $1,600, slowly trying to regain lost ground amidst the raging bear market.
Also Read: Top Crypto News: Ethereum Mainnet’s 10th “Shadow Fork” Goes Live 26 Hours Early.
Reading: Why is ethereum classic rising today
However, another coin that shares the same name slipped quietly under the radar, but managed to post much more impressive gains. If we were to consider its rally from July 13, 2022, the day the general market managed to bottom out and start its rally, ethereum classic token etc! has managed to increase more than 200%! take a look below.
According to coinmarketcap, ethereum classic had managed to touch over $42.29 at the time of writing, placing it at a nearly 4-month high, YTD. With the upcoming ethereum merger in mid-September 2022, it looks like classic ethereum investors are poised to make a big buck!
but why is ethereum classic going up so much?
To understand that, we’ll need to understand what effect the ethereum merger will have on ethereum classic. and for that, we’ll have to dig a bit into ethereum classic’s past.
ethereum classic was created after a fork in the main ethereum blockchain after a dao on the network was hacked in 2016. the original oldest chain containing the history of the hack on the dao was renamed to ethereum classic, while the new one that was saved from the hack was called ethereum.
also read: ethereum combination
so basically ethereum classic still works on the principles of the previous generation of ethereum, so while the new one will adopt the proof-of-stake consensus mechanism, the old one will continue to operate with the higher-end proof of consumption Energy. working consensus mechanism. therefore, miners working on ethereum today will be forced to shut down their mining rigs or switch to other compatible proof-of-work (pow) networks.
and the most suitable alternative that works for them is naturally ethereum classic. uses the same consensus algorithm as ethereum (et-hash algorithm). in contrast to that, bitcoin uses the sha-256 which is not suitable for gpus built for mining on the ethereum network. so instead of that piling up as junk, those mining rigs will essentially be put to work on another network that works pretty much the same way ethereum does today, before the merger.
therefore, ethereum classic will become one of the biggest beneficiaries of the ethereum migration, which is expected to reduce the income of up to a million people.
who is going to win with this?
Thanks to this migration, classic ethereum miners looking to increase their mining capacity can now take advantage of the sale of second-hand gpus and asic miners from ethereum miners who have decided to convert validators to ethereum 2.0. this would allow them to achieve higher hashing power on the network, thus improving their chances of solving a lock and gaining a competitive advantage.
If we check the on-chain metrics for the token, we can already see a huge increase in hashrate etc. it’s almost at the highest point of the last three months!
The second positive thing, which we can already see, is the token price appreciation etc. as miners migrate from ethereum to ethereum classic, leading to higher demand for the same token.
along with that, a group of pow enthusiasts, who still believe in the og consensus mechanism, might also want to be a part of this growing pow blockchain network, and it might soon become the pow network larger, with ethereum possibly out of the way in about two months.
further reading: classic ethereum price prediction
classic ethereum price analysis
For any technical analysis on ethereum classic, we will need to look at a slightly longer time frame. in our case here, we will be taking price chart data from about a year and a half. so what that says is that the ethereum classic token etc. it is in a relatively comfortable position in terms of price. it has managed to recover a large part of what it lost amidst the raging bear market since the beginning of 2022. Once, even in March, it managed to break the opening price of 2022 to touch levels of almost $52.
but currently trading at $33, it’s still relatively comfortable to go on a slow but steady rally here. why do I say that? that’s because it’s currently trading just shy of 50% below the November 2021 highs of around $66-70. now the broad region between $45 and $75 is an accumulation zone where etc. can be expected. take some time to absorb all selling pressures before resuming the rally. that could even take a couple of months.
Once it’s able to cross that, we may see another major rally to its true all-time highs over $180, but that’s still a long, long way off. but overall, things look pretty rosy for ethereum classic on the technical side as well.
how to invest in ethereum classic (etc.)
Classic ethereum (etc.) can be easily purchased here at coindcx along with the best deals on the market. simply download the coindcx app crypto app, enter the required details and wait for your profile to be verified. once done, fund your wallet and buy ethereum classic (etc).