- 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.’
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]
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.