Ethereum Classic (ETC) price rallied on September 5 on back-to-back positive reports about its adoption among crypto miners.
High mining pool supports Ethereum Classic
On the daily chart, the price of ETC increased by 14.5% to $37.25 per token. The big gain comes days after BTC.com, a blockchain explorer and crypto mining pool, launched a special Ethereum Classic pool for three months of “zero fee” mining.
The announcement comes after the “merger” that will transform Ethereum’s power-based Proof-of-Work (PoW) protocol into a “cost-effective” and scalable alternative, Proof-of-Stake (PoS) on or before September 19.
But switching to PoS will render Ethereum’s PoS mines useless. On the other hand, Ethereum Classic, the original version of Ethereum, still uses PoW, which can be a refuge for miners affected by the merger.
The network is attracting massive numbers of PoW miners, confirmed by Hashrate by hitting a peak of 41.81 Terrahash per second (TH/s) on September 4th. Transactions on the PoW blockchain.
This migration has helped ETC tremendously in recent months; It’s up 200% since mid-June.
The price of ETC may rise another 60%
From a technical perspective, Ethereum Classic looks poised for a price rally around the 60% mark in September.
In particular, the price of ETC has formed a “bull flag” in recent weeks. Bull flags are seen when the price consolidates lower after a strong rally. Meanwhile, they resolve after the price moves in the direction of the previous trend and are thus considered as bullish continuation patterns.
In the year Since September 5, ETC has tested the upper trend line of the bull flag. Let’s say the token does. Chances are higher than that. Also, according to technical analysis, the price can increase as much as the previous height as shown below.
In other words, the ETC bull flag profit target comes in around $58.50, which is about a 60% upside from today’s price.
Related: ETH Integration: CoinGecko Co-Founder Forks Tokens Shares Strategy
Conversely, a critical break below the bullish flag low trendline can invalidate the reversal configuration discussed above.
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