1. HORIZON: 0 - 4 months (Short-Term)
2. FROM: 18 September 2025 | UNTIL: 19 January 2026
3. MANAGEMENT ASSESSMENT: 20% growth
4. RECOMMENDATION: BUY
5. PROJECTION BASED ON: R7 500
● Optimal entry: Look for potential opportunities in the $21 - $22 range, which has recently consolidated.
● Downside protection: Set a stop loss at $19.70, below recent lows, to limit potential losses.
● Upside target: The primary profit-taking zone is $25.20, offering a potential 20% return from the entry price.
● Commitment to Proof-of-Work (PoW): ETC remains the largest smart contract platform using PoW, offering decentralisation and strong censorship resistance, making it stand out as others move to Proof-of-Stake (PoS).
● Improved security and stability: ETC’s hashrate strengthened after Ethereum’s shift to PoS, reducing the risk of attacks by 51%. Its mining community has proven strong and profitable, ensuring long-term network stability.
● Market position and growth potential: ETC offers Ethereum Virtual Machine (EVM) compatibility, enabling easy app migration, and it is seen as a cheaper alternative to ETH. Its smaller market cap and renewed interest during Ethereum ETF launches position it as an undervalued growth opportunity.
● Long-term bullish trend: ETC is currently trading well above its 200-day simple moving average (SMA). This is a widely respected indicator of a long-term uptrend, signalling that, despite any short-term volatility, the bulls are still largely in control of the broader market direction.
● Potential double bottom formation: The price chart for ETC appears to be forming a "double bottom" pattern, which is a classic bullish reversal indicator that resembles the letter "W". This pattern suggests that selling pressure has been exhausted at a strong support level, which has been tested twice without breaking lower. The neckline at $22.50 of this pattern, representing the peak between the two lows, is a crucial resistance level to watch. A decisive close above this neckline would confirm the pattern and signal a potential continuation of the uptrend.
● Bullish momentum indicators:
- MACD Crossover: The moving average convergence divergence (MACD) indicator has recently shown a bullish crossover, where the MACD line crosses above its signal line. This event is often interpreted as a signal of increasing upward momentum by traders.
- 50-Day SMA Interaction: The price is also interacting with the 50-day SMA. A sustained close above this moving average, which represents the average price over the last 10 trading weeks, would further suggest a continuation of the current trend.
● Competition: ETC faces competition from Ethereum and other highly active smart contract platforms like Solana, Cardano and Polkadot, which currently have more developer activity and transaction volume.
● Liquidity challenges: The discontinuation of USDT support on the ETC network in August 2025 presents a short-term challenge for liquidity and may create friction for traders and dApps.
● Market perception: ETC has historically underperformed the broader market and is still working to overcome its reputation from past security incidents.
● The Tokenomics of Ethereum Classic (ETC)
● Ethereum Classic hash rate jumps 70% amid The Merge
Disclaimer:
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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