Ethereum Basic (ETC) has been outperforming its arch-rival Ethereum’s native token Ether (ETH) in the course of the present crypto market rebound with the ETC/ETH pairs at 10-month highs.

Why is ETC beating ETH?

ETC’s worth has risen to $27 on July 22, amounting to a 100% acquire in 9 days after bottoming out at $13.35. Comparatively, ETH’s worth has seen a 64% rally in U.S. greenback phrases.

ETC/USD versus ETH/USD every day worth chart. Supply: TradingView

Ethereum’s rebound has been among the many sharpest among the many high cryptocurrencies, primarily as a result of euphoria surrounding its potential network upgrade in September.

Dubbed “the Merge,” the long-awaited technical update will change Ethereum from proof-of-work (PoW) to proof-of-stake (PoS).

Furthermore, it is going to change miners with stakers. Because of this, the PoS change may drive current Ethereum miners to modify to PoW chains.

Unsurprisingly, Ethereum Basic is the closest to Ethereum by way of community design and compatibility as a result of Ethereum Basic is the legacy chain split from Ethereum following a contentious exhausting fork in July 2016. 

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Speculators are thus anticipating Ethereum Basic to change into the primary alternative for miners migrating from Ethereum, and that is doubtless one of many fundamental causes ETC’s current worth surge. 

ETC worth technicals lean short-term bearish

From a technical standpoint, Ethereum Basic has been reeling underneath the stress of its 200-day exponential shifting common (200-day EMA; the blue wave within the chart beneath) close to $27.35.

ETC/USD every day worth chart. Supply: TradingView

ETC/USD has witnessed a powerful bearish rejection close to the wave resistance on July 19, confirmed by the most important spike in its every day buying and selling quantity in virtually a yr. As well as, the rejection got here after testing the 0.382 Fib line at round $27.47 as resistance.

Associated: All ‘Ethereum killers’ will fail: Blockdaemon’s Freddy Zwanzger

ETC now consolidates contained in the $22–$25 worth vary with its interim bias skewed towards the draw back on account of an “overbought” relative strength index (RSI).

ETC eyes a decline towards its 50-day EMA (the pink wave) close to $19 if it decisively breaks beneath $22—over 25% decrease than July 22’s worth.

Conversely, a profitable break above $25 and the 200-day EMA may have ETC’s worth rally over $30.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you need to conduct your individual analysis when making a choice.