Ethereum Classic price prediction: ETC divergence with ETH widens
- Ethereum Classic price has remained in a tight range recently.
- Its volatility has declined substantially in the past few days.
- We explain why the coin could soon surge.
Ethereum Classic (ETC/USD) price remained in a tight range even as Ethereum price soared to a record high. ETC is trading at $55, where it has been in the past few days while ETH soared to more than $4,700. It has a market cap of more than $7.2 billion, making it the third-biggest cryptocurrency in the world.
ETC and ETH divergence widens
Ethereum Classic is a blockchain project that emerged from a hard fork of Ethereum in 2020. The platform helps developers build decentralized applications. ETC is its native token.
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However, unlike Ethereum, Ethereum Classic has not caught up. Instead, most developers have opted to keep using Ethereum to build applications. Others have opted for the relatively smaller Ethereum-killers like Solana, Polkadot, and Binance Smart Chain.
There are several reasons why Ethereum Classic has lagged. For one, its network has become popular with the so-called 51% attacks. As such, many people prefer the security offered by Ethereum’s blockchain.
Also, the network is usually relatively slower than Ethereum. Most importantly, Ethereum simply was in a pole position when Ethereum Classic was formed.
Meanwhile, the divergence between ETH and ETC prices has widened. In the past, ETC used to track the price of ETH. This is because ETH has always been the expensive token. As such, investors used to buy ETC as a proxy for Ethereum.
A similar relationship has long existed between Bitcoin and Bitcoin Cash. Similarly, gold has always had a similar relationship with silver.
Therefore, there is a likelihood that the ETC price will start rebounding as investors reflect on its “cheaper” valuation compared to Ethereum. Also, the price is likely waiting for a spark that will possibly push it higher.
Ethereum Classic price prediction
The daily chart shows that the Ethereum Classic price has been in a very tight range in the past few weeks. The price has remained intact inside the current range. As a result, ETC has remained along the 25-day and 50-day exponential moving averages (EMA). The Average True Range (ATR), which is a good measure of volatility has also declined to the lowest level in months.
The coin has also formed a triangle pattern. Therefore, with this triangle nearing its confluence zone, there is a likelihood that the price will break out higher. The key level to watch will be at $80.