ETC price surged to the highest level since August 18 as investors continued focusing on the upcoming Ethereum merge. Ethereum Classic price jumped to a high of $41.80, which was the highest point since August 18 of this year. It has jumped by more than 35% from the lowest level this month.
Ethereum merge kicks off
Ethereum Classic has emerged as one of the top beneficiary of the ongoing transition of Ethereum from a proof-of-work to a proof-of-stake platform. ETC price has jumped by more than 225% from the lowest level in July, making it the best performing large cap cryptocurrency. This performance has brought its total market cap to over $5.48 billion.
Ethereum Classic price is rising as the process of merging continues this week. This process will happen in two steps that will start today on September 6. After that, unless something drastic happens, it will be followed by the real transition on September 15.
Therefore, ETC has risen as investors wait for this merge. Some analysts believe that Ethereum Classic will see an increase in activity as more developers embrace its proof-of-work ecosystem. Still, it is uncleear whether its network will see more user growth considering that it has a limited market share in key industries like NFTs and decentralized finance.
ETC price forecast
The four-hour chart reveals that Ethereum Classic price found a strong support at $30.61 in August. It then formed a small inverted head and shoulders pattern. In price action analysis, this pattern is usually a bullish sign. It has also moved slightly above the 25-day and 50-day moving averages and the important resistance level at $38.35. The Relative Strength Index (RSI) has continued rising.
Therefore, ETC price will likely continue rising as bulls target the next key resistance point at $50. A drop below the support at $36 will invalidate the bullish view.