The price of Ethereum Classic dropped sharply this week, about 17.4% in a single day, along with the rest of the market. The altcoin did, however, lose the bullish momentum that had been accumulating over the previous week as it made a tiny recovery. In the upcoming year, this momentum should pick up again.
Ethereum Classic will receive a significant update
On January 31, 2024, the Ethereum Classic network is slated to undergo a hard fork. Block 19,250,000 will see the activation of the “Spiral” upgrade. This update will bring the Ethereum hard fork chain into compliance with the Ethereum mainnet by improving compatibility.
The blockchain would have to comply with the Ethereum Virtual Machine (EVM) requirements in order to be compatible with it. Contract development and migration will be made easier as a result of the Spiral Upgrade, which will bring the ETC Network up to line with upstream EVM standards.
Given that the market is largely already bullish due to broader market indications, this upgrade will most likely operate as a trigger.
Ethereum Classic price recovery
As of this writing, the price of Ethereum Classic is trading at $19.94, down 2% from the previous day and 8% from this week. Even though ETC has lost almost half of the gains it saw at the end of October, a negative trend has not yet fully materialized.
The Moving Average Convergence Divergence (MACD) indicator has just barely crossed the bearish crossing, while the Relative Strength Index (RSI) is still above the neutral line, which is indicated at 50.0. However, the likelihood of a rally won’t materialize until ETC has dropped to $19.1.
The price of Ethereum Classic can only start to rise after rising above this barrier; however, if bearish indicators continue to drive down prices, the altcoin may drop as low as $18.2.
ETC, however, may have a chance at an early recovery provided investors behave bullishly and wider market cues prevent a price decrease before the start of the new year. By validating the bearish thesis and breaking the $20.9 resistance level, the Ethereum hard fork would move closer to $22.4.