Summary:
- Ethereum’s Vitalik Buterin has suggested that the Ethereum Classic community will definitely welcome proof-of-work fans after the Merge.
- He points out that Ethereum Classic is ‘totally fine chain.’
- ETC’s price has benefited from the speculation that the Ethereum Classic network will absorb some of Ethereum’s ecosystem in terms of miners and dapps post-Merge.
Ethereum’s co-founder, Vitalik Buterin, has pointed out that anyone wishing to continue operating on a proof-of-work network after the Merge has the option of using Ethereum Classic (ETC). Mr. Buterin made the comments in a July 21st speech where he also pointed out that Ethereum Classic is a ‘totally fine chain.’
He said:
There are plenty of blockchains, such as Ethereum Classic, which is you know, the original Ethereum. Which did not betray the vision by forking the DAO.
It is a very welcoming community, and they will definitely welcome proof of work fans…if you like proof of work, you can go use Ethereum Classic. It is a totally fine chain.
ETC Gains Value on Speculation that Ethereum Classic Will Absorb Some of Ethereum’s Ecosystem Post-Merge.
The possibility of proof-of-work fans migrating to Ethereum Classic has led to the speculation that the network could become a direct beneficiary of the Merge in terms of migration of decentralized applications and miners. The Ethereum Classic team has even anticipated such a move and started ‘welcoming disenfranchised Ethash miners’ on their website.
In addition, the July 14th Tweet by Ethereum core developer @superphiz giving a September 19th timeline for the implementation of the Merge caused a knee-jerk effect on the price of ETC.
Consequently, the value of Ethereum Classic has more than doubled from $14, before the Merge announcement providing an estimated September 19th date, to a local peak of $28.19 set on the 23rd of this month.
The daily ETC/USDT chart below provides a visual cue of the situation.
From the chart, it can be observed that Ethereum Classic could be in the process of printing a bull flag that could allow it to break past the resistance set by the 200-day (green) moving average around the $27.50 price area.
However, its daily MFI, MACD, and RSI point towards an overbought scenario that could result in a pullback this week, back to the 100-day (yellow) moving average around the $21 price level.
Also worth mentioning is that the US Fed is expected to announce a 75 bps interest rate hike this Wednesday. Therefore, caution is advised going long on Ethereum Classic.
[Feature image courtesy of Shutterstock.com]
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