Ethereum’s third tesnet has launched successfully, instilling the faith among users, traders, investors and analysts that the September merger will proceed smoothly. This upcoming merger will see miners moving towards Ethereum Classic (ETC) which has raised the ETC demand.
Over the past 30 days, Ethereum Classic (ETC) witnessed a broad price rally from the $13 mark. The move has placed Ethereum Classic near the upper band of the Bollinger Bands (BB).
At the time of writing, Ethereum Classic (ETC) is trading at $41.90, after dropping by 2.74% over the last 24hrs.
After a correction in the overall market, ETC has now formed a support above the EMA (red) and the 50 EMA (cyan). On the other hand, the Point of Control (PoC, Red) has prompted Ethereum Classic to produce a bullish pennant-like graph.
The next immediate resistance lies at $47 and $49. If ETC fails to claim this level of resistance, the currency could see a bearish pull soon.
Taking into account the Relative Strength Index (RSI), it has recently been revolving around the overbought zone and a broad buying pattern is shining. If the RSI manages to rebound from this area, the buying pressure could slow down.
Ethereum Classic To Plunge?
It’s important to note, however, that Ethereum Classic has now plunged from its $45 mark, and we could witness bearish pressure take over the game.
Currently, Ethereum Classic is trading below the 0.618 Fibonacci level, which is pointing to the fact that the bulls are weakening.
Ethereum Classic has witnessed some interesting price action since mid-July. The Ethereum Merger could bring good luck for ETC as it will lead to an increase in the demand.
