Ethereum Classics rally faulted

• Ethereum Classic is up 140% in a month.

• Token retreats with a 14% drop in a week

• Messari Analysts Do Not Think Ethereum Classic Will Maintain Profits

Ethereum Classic ETC/USD is up 140% in a month. The token is rising against the backdrop of the expected parent Ethereum merger. The merger will move Ethereum from a proof-of-work to a proof-of-stake blockchain. The investor expected this move would allow his PoW miner to migrate to Ethereum Classic.

Messari analyst Tom Dunleavy comments on Ethereum Classic’s latest gains. Dunleavy said ETC’s rise won’t last long. He warns that users and volumes haven’t changed despite the gains. Analysts also point out that there are no applications on the blockchain.

Besides, Dunleavy said the Ethereum merger will not have a significant impact on Ethereum Classic. According to him, ETH mining accounts for his 97% of his GPU mining revenue. ETC mining is only 2%, attracting few miners. He estimates that ETC mining allows him to earn only $700,000 per day. This compares to his $24 million on Ethereum.

Ethereum Classic Slides to Support Market Correction

Source TradingView

Technically, Ethereum Classic has retreated to the $34 support zone. Despite remaining in an uptrend, the bullish momentum is waning. We do not recommend buying on support as the momentum is weakening. If ETC breaks below $34, the next level is $26.

in conclusion

ETC has seen triple-digit gains over the past month. Profits came from the expected boost from the Ethereum merger. Analysts blame gains fueled by hype rather than fundamentals.

A lack of clear fundamentals and weakening FOMO could lead to further declines in ETC. Investors can take advantage of short-term price gains, but we believe the $34 support is vulnerable.