The Ethereum Classic price has had a remarkable comeback. ETC has surged by more than 1,700% this year, propelling it to the top 20 of all the biggest cryptocurrencies in the world. It has a market value of more than $11 billion.
What happened: Ethereum Classic is a blockchain project that is similar to the main Ethereum. It allows developers to build applications using the smart contract technology. This week, focus among traders has been on the strong rally of Ether, the second-biggest cryptocurrency after Bitcoin.
The currency has done well as its adoption continues to grow among institutional investors. Therefore, in most times, the ETC price tends to do well when the main ETH does well. Like I wrote on Tuesday, this is because of the fact that ETC is relatively cheaper than ETH. As such, many retail traders prefer buying ETC that is going for about $106 than ETH that is going for more than $3,400.
It has also gained because of the ongoing Mantis update.
Ethereum Classic price analysis
The ETC price surged to an all-time high of $150. This is a remarkable performance considering that it started this month at less than $40. On the four-hour chart, we see that the ETC/USD pair seems to be forming a bullish pennant pattern, which is usually a continuation sign.
The price remains above the key support at $50, which was the previous all-time high. At the same time, we see that the currency is at an extremely overbought level. Therefore, while I remain bullish on ETC with a target of $200, I can’t rule out a major pullback on profit-taking. If this happens, the currency will likely drop to $100.