The price of Ethereum Classic almost doubles as the Digital Currency Group invested $ 50 million

Ethereum Classic (ETC) hit a nearly three-week high today (June 30), boosted by a $ 50 million investment by Barry Silbert-backed Digital Currency Group combined with a market rally, with the entire crypto market being led by Bitcoin.

After ETC rose 98% from $ 31.9 on June 22 (hitting a high of $ 63.9), ETC took a break and fell slightly to $ 55.5 and has a total market cap of $ 6.66 billion .

ETC price chart | Source: Tradingview

Digital currency group (DCG) Disclosure resolved on June 21st to buy back shares in the Grayscale Ethereum Classic Trust (ETCG) valued at $ 50 million. Grayscale is a New York-based investment firm that provides accredited investors with access to digital currency products in the form of traditional securities.

ETC holds from Grayscale | Source: Bybt.com

On the day of the announcement, ETC lost 22.56% along with the rest of the broader crypto market in response to China’s crypto crackdown, coupled with a complete ban on all cryptocurrency exchanges.

But despite the strong sell-off pressure, the Bitcoin and Altcoin markets rallied at the same time. Traders, in particular, see a buying opportunity when Bitcoin drops below $ 30,000 – a recent level of psychological support that has closed it lower.

Bitcoin has been trading in the $ 30-40,000 range since May 19 | Source: TradingView

In the meantime, altcoins are only eating up Bitcoin’s rally due to their high correlation.

According to data from Crypto clock, the 30-day correlation between Bitcoin and Ether is 0.83. Index 1 represents their perfect correlation.

Hard fork

ETC gains also occurred in the days leading up to the Ethereum Classic blockchain upgrade in July.

Ethereum Classic emerged from a controversial blockchain fork after hacking around 150 million US dollars on the Ethereum-based DAO project in April 2016. Vitalik Buterin’s team suggested removing the attack from the calendar using a centralized blockchain.

This led to the formation of two camps: one for the withdrawal of the blockchain and the other against. Ultimately, the divergence resulted in the formation of two competing but independent Ethereum blockchains, one of which was Ethereum Classic.

The structure of Ethereum Classic as a blockchain project is different from its competitors. Unlike Ethereum, Ethereum Classic includes many development teams including IOHK, ETC Cooperative, ETC Labs, etc. In general, most of these teams focus on providing scaling solutions.

At the same time, their priority remains to improve development tools and promote cross-chain transactions so that other projects can also build on Ethereum Classic.

On June 10th, Steven Lohja, Senior Developer at Mantis IOHK, announced the Ethereum Classic Blockchain upgrade with a hard fork called Magneto, which will include the Berlin upgrade features introduced by Ethereum earlier this year.

Ethereum Classic’s suggestions for improvement tend to improve the blockchain’s network security while lowering gas charges by storing addresses and keys in one place that users can access with a single transaction.

The Ethereum Classic Hard Fork will hit the market in July, pretty much in sync with the London upgrade from Ethereum at the same time.

Technical facility ETC Thiết

ETC’s recent rebound nearly overrode the classic bearish setup that previously prevailed.

ETC price approaches $ 16.6 | after the collapse Source: TradingView

ETC price rose after breaking the popular descending triangle that formed earlier. It found support just above the 200-day simple moving average (200-day SMA – orange wave on the chart above) and moved higher to close above triangle support around $ 51.77.

Additionally, the rebound turned the 20-day exponential moving average (20-day EMA – green wave) for support. Now it seems to be doing the same with the 50-day SMA (blue wave) acting as resistance.

On the other hand, correcting the lower triangle’s support trendline makes it look like a falling wedge.

ETC suggests a descending wedge breakout | Source: TradingView

ETC has broken out of the pattern bullishly, consistent with its classic definition. When the breakout is complete, ETC can rise by the maximum wedge height – that is, the maximum total distance between its upper and lower trend lines and the price will drop to around $ 86.

That pushes the ETC wedge profit target near $ 130.

Conversely, a possible reversal from the 50-day SMA could result in ETC testing the 20-day EMA as preliminary support. Such movement also risks invalidating the falling wedge pattern.

Teacher

According to Cointelegraph

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