Ethereum Classic Gains 60% In One Week, Why The Merge Could Push Its Price Higher
23 March 2022 - 5:00AM
NEWSBTC
Ethereum Classic moves to the upside and recorded impressive
performance over the last week. ETC bulls have been making this
push as Ethereum prepares for one of the most important events in
its history, The Merge. Related Reading | Ethereum Whales
Purchase Over $6 Million Worth Of APE Tokens Set to combined
Ethereum’s Proof-of-Work execution layer with its Proof-of-Stake
consensus layer. The Merge will finalize the launch of this
network’s PoS chain. At the time of writing, Ethereum Classic (ETC)
trades at $43 and records a 10% and 66% profit in the last 24 hours
and 7 days, respectively. The Merge is expected to reduce
Ethereum’s energy usage by almost 100%, contribute to making ETH a
deflationary asset, and provide stakers with rewards for securing
the network. In addition, this event could mark a new step in the
network’s adoption curve as users will leverage layer-2 scalability
solutions, reducing network transaction fees. The Merge also means
no more ETH mining sector. These operations will need to use their
hardware to mine a different cryptocurrency. Ethereum Classic seems
like the most logical option. The Merge will: Drop Ethereum's
energy usage by ~99.95%Drop Ethereum's issuance from ~5.4M ETH/yr
to ~0.5M ETH/yrProvide ~5-15% APR on staked ETH (as TX fees will go
to stakers) The Merge will not lower transaction fees. L2s and
EIP-4844 will take care of that. pic.twitter.com/8cwslEQtgM —
pseudotheos (@pseudotheos) March 21, 2022 Miners will no longer be
needed with the deployment of Ethereum 2.0. All of this chain hash
power will migrate to ETC. As the event that will make Eth 2.0
happen seems imminent, the market seems to be pricing in this
potential hash power migration. Data from Material Indicators shows
an increase in buying pressure for ETC over the past week. As seen
below, investors from different classes have been contributing to
the rally. Everyone but whales bought in on ETC’s price potential.
The chart shows retail investors (in yellow), and investors with
bid orders from $1,000 to $10,000 have moved in tandem with ETC’s
price action. The former, investors with bid orders of around
$1,000, seem more relevant for Ethereum Classic. The chart shows
this class has been increasing its purchase as the price moves to
the upside, suggesting these bids have been crucial to sustaining
momentum. Can Ethereum Classic Sustain Momentum? In shorter
timeframes, investors shown with the green line, above in the
chart, seem to have slowed down on their purchase. Thus, ETC’s
price could see some downside price action in the short term. In
the long term, the sustainability of the rally could depend on
these investors resuming ETC purchases. The market has seen a boom
in the price of “dino coins” or long data altcoins. Related Reading
| Ethereum Classic Displayed Double-Digit Gains; What’s Next!
Bitcoin Cash (BCH) records a 14% profit in the last 24 hours and a
30% profit in the past week. Our Editorial Director Tony Spilotro
said the following on ETC, BCH, and other dino coins’ potential for
a fresh leg up: The altcoins that no one is paying any attention to
anymore, are going to shine soon. Even Bitcoin Cash is up like 10%
today. LTC, Dash, BCH, XLM, EOS, etc. I don’t necessarily advocate
buying them, but I do expect this sector of paleo-altcoins to rally
strong soon.
Bitcoin Cash (COIN:BCHUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bitcoin Cash (COIN:BCHUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024