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The Ethereum Classic (ETC/USD) price has been in a tight range recently but this could change this week. The coin is trading at $49.95, which is about 55% above the lowest level in June. This brings its total market capitalization to more than $6.5 billion.
Ethereum hard fork likely catalyst
Ethereum Classic and Ethereum have a close relationship. It was formed after Ethereum’s hard fork in 2017. Since then, Ethereum has flourished, with its total market capitalization rising to more than $250 billion. A single Ether sells for more than $2,600.
With Ethereum being unaffordable to many traders, some opt to use Ethereum Classic as a proxy. Furthermore, ETC is selling for about $50. Therefore, with $10,000, one can buy more Ethereum Classic than the real Ethereum.
Therefore, the ETC price will likely benefit this week as Ethereum goes through the so-called London hard fork. This fork is part of the overall ETH 2.0 transformation that hopes to move it from a proof-of-work to a proof-of-stake. In PoS, new coins are minted using a consensus mechanism instead of mining.
The London hard fork will happen between Wednesday and Thursday this week. It will reduce the number of coins supplied every day by a third and lower the total gas fees. Also, it will introduce the concept of burning, which will lead to reduced Ethereum supplies. Therefore, there is a possibility that Ether prices will rally before and after the fork.
While the London hard fork will not have an impact on Ethereum Classic, its price will likely do well because of its correlation with Ether.
Still, Ethereum Classic faces significant challenges. For one, many developers have ignored it because of its security vulnerabilities. As such, only a few projects have been built using the platform.
Ethereum Classic price prediction
The four-hour chart shows that the ETC price has been in a slow upward trend in the past few days. As a result, the coin remains at the same level as the 25-day and 15-day moving averages. It is also slightly above the ascending trendline shown in green while the Relative Strength Index (RSI) has declined to 46.
Therefore, the coin will likely bounce back this week. If this happens, the next key level to watch will be the resistance at $60. On the flip side, a drop below $45 will invalidate this view.