It’s only a matter of days before Ethereum moves from Proof of Work to Proof of Stake. At the same time, many projects that work in Proof of Work attract the eye of miners. This is the case of FLUX or ETC which have seen their prices go up. Today, let’s analyze the charts of Ethereum Classic to determine its current situation and what we can expect for the next few weeks.
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Ethereum Classic is still under key resistance
You can see that after the long accumulation period between $3.29 and $13, ETC saw a new high in 2021 at over $179. However, the market having since entered a downtrend, Ethereum Classic was so weak that it was unable to recover in November 2021. Recently, the asset returned to the upper limit of the old accumulation area to $13 before rebounding in recent weeks.
Currently, the asset is facing a pivot level at $41.90 (shown in black) which is confluent with oblique resistance (shown in red). Since late July, Ethereum Classic has been unable to break out of it to seek higher price levels. However, if it does, the first target is at $48.
Besides moving below these resistances, Ethereum Classic manages to hold above the uptrend of the EMA13/25/32. Thus, nothing is decided yet as The Merge approaches and volatility will probably be in order over the next few days! However, if it performs a trend reversal by falling below 30 dollars, it will not be a very good sign for the next few months…
A compression of the price which does not facilitate the task
When we move to a daily chart, we can better understand the swing in price between resistance at $341.90 and support at $32 (High Volume Node). Moreover, Ethereum Classic cannot manage to stay (for the moment) above its POC. It is the horizontal red line which corresponds to the area where the volume traded is the largest since the start of 2022. If there is price acceptance above this level at $36.75, it is conceivable to have Ethereum Classic return to $41.90 then, in case of a bullish breakout, at 46.85/48 dollars.
However, if the asset fails to break out of these levels and loses the EMA trend again on the daily scale, we should be alerted to a strong comeback from the sellers. Acceptance of the price below $32 and a break down of $30 (in confluence with the EMA200 which is not represented on the chart) will allow us to consider bearish objectives. First up is the High Volume Node at $26.10/$26.80. If this level does not hold, we will have our eyes on the Volume Area Low which sits at $23.32.
What about Ethereum Classic versus Ethereum?
To close this analysis, we can take a quick look at the Ethereum Classic chart against Ethereum. This allows to determine the capital turnover and if one of the two assets manages to outperform. You can see that ETC has done very well over the past few months, against the backdrop of the Ethereum pro-fork narrative (good plan ?). However, nothing is decided yet and The Merge Probably Brings Volatility Spikes on both assets as well as on this chart.
By analyzing the key levels and using the volume profile since 2018 on a weekly scale, we quickly understand that ETC is below a key level. If he manages to break free and manages to regain the POC (red line), ETC will probably return to 0.03 ETH. If it preserves such a dynamic during the month of September, it will not be impossible to have an ETC return to 0.035 ETH. However, nothing is decided yet and Ethereum could quickly take control. Leaving ETC aside below its pivot zone to retrace to lower price levels.
Here we are at the end of this ETC technical analysis. More than ever, as The Merge approaches, it seems necessary to analyze Ethereum Classic as well as Ethereum to analyze the balance of power between the two assets. Against the dollar, the asset is indecisive. He is moving in a range and can’t decide which direction to take. However, when it breaks up or down one of the levels we have identified, we can expect some very interesting volatility spikes to return.
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