The Ethereum Classic price is in a consolidation mode after it had one of the best rallies in recent past. The ETC is trading at $124, bringing its year-to-date gains to more than 2,000%. As a result, its market cap has surged to more than $14.4 billion, making it the 15th biggest digital currency in the world.
Ethereum Classic has outperformed Ethereum
Why Ethereum Classic price surged
Ethereum Classic is a blockchain project that helps developers build decentralized applications. The network was formed after the hard fork of the Ethereum blockchain in 2016. This happened after the now infamous DAO hack that saw more than $50 million hacked. ETC is the native currency for the network just like ETH is the currency for Ethereum’s network.
For years, ETC has lagged other cryptocurrencies. Analysts cite this performance to the fact that few developers have developed projects on its blockchain. This is because of the high number of attacks in the network. In a comment to Forbes, an analyst said:
“The price has risen partly due to speculation following the massive ETH rally and partly because market participants are speculating on ETC having more relevance post the ETH 2.0 upgrade.”
In the past few weeks, however, ETC has surged as investors have bet on the strength of Ethereum’s network. Indeed, Ethereum price surged above $4,000 for the first time on record. And some analysts expect the price to soar to $5,000 soon.
For one, ETC is usually a proxy for Ethereum. This simply means that many retail traders who can’t afford $4,000 to buy ETH, buy ETC instead. The same is true with other currencies like Bitcoin and Bitcoin Cash.
ETC price forecast
The four-hour chart shows that the Ethereum Classic price has been in a consolidation mode in the past few sessions. This is evidenced by the fact that the currency is consolidating along the 25-day and 15-day moving averages. The average true range (ATR), which is a measure of volatility, has also declined. This is usually a sign of calm before the storm.
Most importantly, ETC seems to be forming a bullish pennant pattern that is shown in black. Therefore, we can’t rule out a situation where the price bounces back higher. That prediction will be validated if the price moves above its all-time high of $175. However, a drop below the lower line of the pennant pattern will invalidate this trend,