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Ethereum Classic Maintains 32% Steady Rise – What’s Driving ETC Up?

The recent approval of the first Bitcoin spot exchange-traded fund (ETF) in the United States by the Securities and Exchange Commission (SEC) has reverberated across the cryptocurrency landscape, triggering a significant surge in various altcoins, with Ethereum Classic (ETC) taking the spotlight.

Often overshadowed by its more well-known sibling, Ethereum, ETC has emerged as the clear winner in the aftermath of the groundbreaking news, experiencing an impressive surge of over 31% in the past seven days.

Ethereum Classic Trading Volume Up

Since the SEC’s approval of the Grayscale Bitcoin ETF on January 10th, Ethereum Classic has skyrocketed by a staggering 30%, currently maintaining a trading value around $26. This meteoric rise has been accompanied by a remarkable 270% increase in trading volume, soaring to a substantial $1.8 billion.

Such robust figures underscore a palpable surge in investor confidence, suggesting the potential for further gains in the near future.

While Bitcoin itself witnessed a modest price increase, briefly touching $47,000, Ethereum stole the limelight by breaking a 20-month barrier and surpassing $2,600.

This remarkable 10% surge within a mere 24 hours has positioned Ethereum at its highest value since May 2022. Analysts attribute this impressive performance to Ethereum’s robust underlying technology and recent network upgrades, cementing its status as a favorable option for investors after Bitcoin.

The approval of the Bitcoin spot ETF is not the sole catalyst for this altcoin rally; the much-anticipated Bitcoin halving event, scheduled for later in the year, is also playing a pivotal role in bolstering bullish sentiment.

This event, occurring approximately every four years, involves a reduction in the number of newly minted Bitcoins and has historically coincided with price appreciation in the cryptocurrency market.

The confluence of these factors has created a perfect storm for Ethereum Classic, propelling it towards the coveted $30 mark.

ETC Strong Performance

Industry experts anticipate that this milestone may be achieved soon, fueled by Ethereum Classic’s impressive trading volume and market capitalization, which has surged by 34% to cross the $4 billion mark since the ETF news broke.

However, amidst the euphoria surrounding this surge, it remains crucial to acknowledge the inherent volatility of the cryptocurrency market. While the approval of the Bitcoin spot ETF and the impending halving event offer promising prospects, unforeseen factors can swiftly alter market dynamics.

The recent ascent of Ethereum Classic serves as a compelling testament to the interconnectedness of the cryptocurrency market and the substantial impact of major regulatory decisions.

As the industry continues to evolve, it will be intriguing to observe how other altcoins respond to these developments and whether Ethereum Classic can sustain its lead in this post-ETF era.

Featured image from Shutterstock

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Ethereum Classic (ETC) Explodes Over 50% In Massive Price Jump – Here’s Why

The long-awaited arrival of a Bitcoin spot ETF in the US has sparked a surge in cryptocurrency prices, with Ethereum Classic leading the charge among altcoins.

After languishing around $20 for months, Ethereum Classic (ETC) has skyrocketed over 50% in the past seven days, currently hovering around $29.45 and just a breath away from reclaiming the $30 mark.

This impressive rally comes amidst a broader market upswing triggered by the Securities and Exchange Commission’s (SEC) historic approval of the Bitcoin Trust ETF on January 10th, 2024.

Ethereum Classic Surge: A Combination Of Factors

ETF-fueled optimism: The approval of the Bitcoin spot ETF signifies increased institutional interest in the crypto market, a development that traditionally benefits the entire ecosystem, including altcoins like ETC.  This optimism is reflected in the strong performance of other major cryptocurrencies, with Ethereum witnessing a 10% climb and briefly hitting a 20-month high above $2,600.

Ethereum Classic’s unique appeal: Compared to its Ethereum counterpart, Ethereum Classic boasts a smaller market cap and lower transaction fees, potentially making it a more attractive option for traders seeking higher returns and cheaper on-chain activity. Its recent network upgrades have also bolstered confidence in its technological capabilities.

Spillover effect and community hype: The Bitcoin ETF approval has undoubtedly fueled a general sense of bullishness across the crypto landscape, influencing investor sentiment towards altcoins with perceived potential. Additionally, the strong community support and active development around Ethereum Classic further contribute to its upward momentum.

ETC Trading Volume Soars

The surge isn’t just limited to price. Ethereum Classic’s trading volume has also soared by a staggering 276% in the past 24 hours, reaching a volume of $1.8 billion.

This increase in trading activity further validates the market’s interest in Ethereum Classic and potentially indicates continued upward pressure on its price.

However, it’s crucial to remember that the crypto market remains highly volatile. While the Bitcoin spot ETF approval and Ethereum Classic’s recent performance are positive indicators, investors should conduct thorough research and consider both the potential benefits and risks before making any investment decisions.

With its strong community, technological advancements, and now, the tailwinds of the Bitcoin ETF approval, Ethereum Classic has positioned itself as a frontrunner in the current altcoin rally.

Whether it can sustain its momentum and break through the $30 barrier remains to be seen, but its recent performance signals a renewed level of enthusiasm for this resilient blockchain project.

Featured image from Shutterstock

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US Authorities Confiscate $54 Million In Ethereum From Convicted Drug Dealer

In recent developments, US authorities led by US Attorney Philip R. Sellinger successfully seized $54 million worth of Ethereum (ETH) from Christopher Castelluzzo, a convicted drug dealer operating in Lake Hopatcong, New Jersey. 

Massive Crypto Bust

The US Attorney’s Office filed a civil forfeiture action to recover previously seized cryptocurrency that was determined to be the proceeds of an illegal narcotics distribution scheme operating in and around New Jersey. 

US Attorney Philip R. Sellinger emphasized law enforcement’s “commitment” to seizing financial gains from criminal activity, regardless of the form they take. Sellinger further stated:

The civil action we are taking today seeks to recover millions of dollars of cryptocurrency, which the defendant allegedly obtained from drug sales. Whether it’s as simple as bags of cash or as sophisticated as cryptocurrency, we will take the steps necessary to seize financial gains defendants obtain from criminal activity. 

According to the US Department of Justice’s (DOJ) press release on the case, the prosecution sheds light on using cryptocurrencies such as Bitcoin (BTC) and Ethereum by criminals on the darknet to evade detection.

In addition, James E. Dennehy, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Newark, stated that the FBI played a critical role in uncovering the illegal conduct and ill-gotten proceeds.

Drug Trafficker’s Ethereum Stash Seized

According to court documents and the investigations conducted, Christopher Castelluzzo and his associates conspired to sell narcotics between 2010 and 2015. 

In 2013, they allegedly began trading drugs on darknet platforms in exchange for Bitcoin. Castelluzzo, using proceeds from narcotics sales, participated in Ethereum’s Initial Coin Offering (ICO) in July 2014, acquiring 30,000 Ethereum. Additionally, Castelluzzo received 30,000 ETH Classic in 2016.

Castelluzzo’s plan to move the funds to a tax haven in Ireland, Malta, or the Bahamas, or potentially keep them in USDT (Tether), was revealed in forfeiture documents. 

However, a subsequent search warrant led to the raid of Brian Krewson’s residence, an associate of Castelluzzo. Police discovered the relevant crypto wallets under Krewson’s control, and after obtaining the necessary passwords, law enforcement executed the seizure of the Ethereum, valued at $31 million at the time.

Currently serving concurrent 20-year federal and state prison sentences for drug distribution convictions, Castelluzzo attempted to evade taxes and transfer the 30,000 Ethereum out of the United States while incarcerated. 

However, Castelluzzo’s plans were intercepted when recorded prison telephone calls exposed his efforts to launder the cryptocurrency. As a result, the United States intervened and seized Castelluzzo’s cryptocurrency holdings linked to his drug trafficking crimes.

The current value of the 30,000 Ethereum stands at approximately $54 million, underscoring the significant impact of the seizure. 

Ethereum

As of the time of writing, ETH is trading at $1,815, reflecting a 0.9% increase over the past 24 hours and a steady upward trend of over 2% in the past seven days, exhibiting strong bullish momentum in the market.

Featured image from Shutterstock, chart from TradingView.com

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Ethereum Classic (ETC) Price Balloons To Nearly 30% In Last 7 Days

Ethereum Classic (ETC), a decentralized, open-source and blockchain-based cryptocurrency, might soon lose its current momentum that allowed it to become one of the top performing crypto assets for the past week.

A quick review at some data points for the digital asset reveals that it is currently trading at an overbought position which might cause buyers to be “exhausted” and unable to sustain a further rally, yielding technical advantage to the bears once again.

Moreover, the altcoin’s Bollinger Bands indicate that it is extremely volatile at the moment, making it susceptible to significant price swings that could happen in just a wink of an eye. This makes Ethereum Classic a more risky asset to trade or hold.

Ethereum Classic: A Quick Glance At Impressive Run

According to latest tracking from Coingecko, at the time of writing, ETC was changing hands at $19.82.

Although the crypto has declined by 2% over the last 24 hours, it is still enjoying a nearly 30% jump from its value seven days ago. Moreover, on a bi-weekly basis, the digital token tallied an upswing of 20.3%.

During the last few days, Ethereum Classic was among the few cryptocurrencies that managed to post double-digit gains within the previous week led by Solana which surged by an astonishing 35%.

As for the reason, some experts believe that the pivotal turnaround in the hash rate of the ETC towards the end of 2022 paved the way for miner profitability which, in turn, increased the number of transactions processed by the asset’s network.

In fact, during the last two days, Ethereum Classic transaction count surged and hit a new monthly high. Following this, ETC recorded a 12% increase in its trading price, indicating that the spike in volume triggered an upward movement for the altcoin’s value.

Preparing For Possible Price Drawback

Despite being “in the green” for more than a week now, Ethereum Classic is still haunted by the negative weighted sentiment that denotes bad convictions that investors harbor for the digital token.

Holders and prospective buyers are therefore advised to be cautious as non-positive sentiment is usually followed by a price retracement.

Coincodex, however, seems to disagree with this thesis as its forecasts for ETC remains bullish despite technical indicators saying otherwise.

In fact, the online crypto data provider predicts the digital coin will change hands at $19.76 five days from now and will make another massive surge within the next 30 days to trade at $47.48.

-Featured image: Invezz

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Ethereum Classic Hashrate Dumps Almost 50% In 3 Months, What About ETC?

Ethereum Classic saw its hashrate balloon when Ethereum finally moved to a proof of stake mechanism. The miners who were being kicked out of the network and could no longer use their machines had switched to others such as Ethereum Classic and Ravencoin to put their very specific machines to use. At the time, ETC’s hashrate had grown more than 200%, but now the network is seeing its hashrate fall once more.

Ethereum Classic Hashrate Down By Almost 50%

On Sep. 16, the mining hashrate of the Ethereum Classic network reached a new all-time high of 199.4 terahashes per second (TH/s) after climbing steadily for more than a week. With this growth had come more usage on the network, triggering staggering growth in its price.

However, as the Ethereum network has settled into its proof of stake (POS) consensus mechanism, the Ethereum Classic hashrate is correcting downwards. Hashrate is now down almost 50% in the last 3 months to be sitting at 109.3 TH/s on Dec. 22.

Ethereum Classic hashrate

The decline can also be attributed to the bear market and the muted interest from investors. Since bitcoin’s price touched below $20,000, all of the cryptocurrencies in the space have seen a similar decline. Ravencoin, another proof of work network that got massive attention following Ethereum’s move to proof of stake, has also seen its hashrate plummet in the last 3 months.

Ravencoin’s hashrate now sits at 9.49 TH/s compared to its Sep. 22, 2022 peak of 17.59 TH/s. Meanwhile, other leading proof of work networks including Litecoin and Dogecoin has seen an increase in mining hashrate, whereas bitcoin remains mostly around 250 exahashes per second (EH/s).

What About ETC Price?

ETC, the native cryptocurrency of the Ethereum Classic network, was basically on a rollercoaster in the three months since Ethereum moved to proof of stake. At first, as the network began to get more attention, ETC’s price had risen drastically. It eventually peaked above $42 before starting another downtrend.

At current prices, the digital asset has lost over 68% of its value from September 2022 and is still very bearish. A lot of attention had also moved on to Dogecoin, a proof-of-work cryptocurrency that saw a surge in price following Elon Musk’s takeover of Twitter.

Ethereum Classic (ETC) price chart from TradingView.com

Obviously, this increase in the price of DOGE had incentivized miners to move over to Dogecoin, eventually taking share from Ethereum Classic. As interest fell, so did the mining hashrate and price naturally followed the same trend.

ETC now sits below its 100-day moving average, which means that investors are expecting lower prices to come. It is trading at $16.41 at the time of this writing, down 11% in the last 7 days.

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ETC Price And Social Dominance Figures Down In Last 7 Days – What’s Next?

Similarly to Bitcoin and other altcoins, ETC (Ethereum Classic) has been severely impacted by the FTX liquidity crisis.

CoinGecko data show that the historical performance of the coin on the daily, weekly, biweekly, and monthly time frames is not promising for the ETH fork.

The most noticeable depreciation among these was recorded for the bi-weekly time scale, at a rate of 16.7 percent. If other measures continue to lag, what does the future hold for ETC?

ETC Stepping On Green

The token has gained 19.35% so far today. While $18.255 provides temporary support for bulls, the regression channel indicates a much stronger slump and so the bulls should not bank on it.

At the moment, the highest the price of the coin may go is $22.595, the level where buyers and sellers met during the decline from October 29 to November 3. This ceiling will begin to give way in the coming days as the coin’s relative strength index (RSI) rebounds.

Since the price of ETC is highly correlated with the price of ETH, traders and investors in the former should keep an eye on the price of ETH as well.

Image: Coinmash

This indicates that the price of ETC will closely track that of ETH. There is an indication of a surge in the price of Ether from the $1,099.17 area, where it had been trading at the time of writing, although at the rate the broader crypto market is going, any decent spike may not come soon.

In addition to relying on the rising RSI readings, bulls should also consider the positive CMF figures, which signal a change in sentiment. This could counteract the recent decline in ETC’s social influence caused by the FTX insolvency situation.

Moreover, social engagements and mentions are increasing, drawing more attention to the coin.

Bulls In Charge… For Now

Despite the obvious negative decline, the market is partly under the grip of bulls, according to the available technical indicators. As technicals improve, investors and traders should continue to hold ETC for the time being.

The EMA ribbon, on the other hand, is bearish and suggests that the coin may be shorted rather than held for the long term. Nonetheless, once the market rebounds from the severe decrease caused by panic, we may expect ETC’s price to closely track that of tETH’s.

However, investors can continue to hold ETC for the foreseeable future. Traders and investors should also exercise caution. As much as possible, ETC bulls should defend the $18.225 support zone.

ETC total market cap at $2.9 billion on the daily chart | Featured image from The Market Periodical, Chart: TradingView.com

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Ethereum Classic Flashes Bullish Signs As Volume Rises; Will $32 be breached?

  • ETC’s price shows strength as it bounces from a downtrend range with high volume, aiming for a rally to $30.
  • ETC faces a major test to trend higher above $30 after the price broke out of its descending triangle price movement.
  • ETC’s price remains strong below the 50 and 200 Exponential Moving Averages (EMA) as it attempts to rally past these regions.

Ethereum Classic (ETC) has remained strong after breaking out of its downtrend descending triangle with good volume, with the price aiming to rally to $30. The cryptocurrency market has appeared more stable this week, with significant price movements in Bitcoin (BTC) and Ethereum (ETH). This new relief rally in the cryptocurrency market has benefited smaller coins like Ethereum Classic (ETC), which has shown real strength in breaking out of its long downtrend movement. (Data from Binance)

Ethereum Classic (ETC) Price Analysis On The Weekly Chart

Although many altcoins have struggled to trend in a range market, the price of ETC has seen more of a downtrend move despite showing some price movement to the upside, which was short-lived as the price was rejected.

ETC fell from an all-time high of more than $180 to a region of $41 before rallying to a high of $75; the price of ETC faced further rejection to a range low of $46, where it formed weak Support to hold sell-offs, but this proved futile as price continued to fall.

The price of ETC fell to a weekly low of $24 and immediately bounced, forming a price range in an attempt to break out.

With the market looking more promising, we could see ETC rally to a high of $30 with good volume, where the price has more room to trend higher.

ETC has a favorable overall structure, with a high probability of price retesting the $30 and higher ranges following a successful breakout from the range low. If ETC fails to break and hold above $31, a retest of $24 is possible.

Weekly resistance for the price of ETC – $30-$31.

Weekly Support for the price of ETC – $24.

Price Analysis Of ETC On The Daily (1D) Chart

Daily ETC Price Chart | Source: ETCUSDT On Tradingview.com

In the daily timeframe, the price of ETC remains strong and trades below the key resistance levels after breaking out of its downtrend price movement with good volume as it attempts to rally to a high of $30, acting as key resistance to the price. 

The price of ETC needs to break and close above 50 EMA, acting as a strong resistance for the price of ETC. The price of $28 corresponds to the value of 50 EMA, acting as resistance for the price to trend higher to a region of $32. The price of ETC closing above $32 is a good sign, as this is confirmed by the Fibonacci retracement value of 23.6%.

Daily resistance for the ETC price – $32.

Daily Support for the ETC price – $20.5.

Featured Image From zipmex, Charts From Tradingview

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Ethereum Classic (ETC) Price Muffled In Last 2 Months – Will ‘Uptober’ Any Different?

There was a 5% loss in value for ETC over the past day. The Ethereum Classic coin has continued its fall on longer time frames since the July spike.

Ethereum Classic bears were unable to withstand the selling pressure after the fork attempted to maintain a price above the $27 support line.

As of this writing, ETC is trading at $23.08, down 16 percent in the last seven days, data by Coingecko show, Saturday.

Although Proof-of-Stake has rendered Ethereum’s mining obsolete, renewed interest in the coin has resulted from the Merge. The day the Merge was made public, the hashrate increased as a result.

However, ETC’s long-term prospects remain bleak as weekly, biweekly, and monthly time periods are all in the red.

The present value of 0.80 between Ethereum and its hard fork indicates that Ethereum Classic will enthusiastically follow wherever ETH goes. The data points to a positive expansion.

Ethereum Classic: Technical Analysis

From September 19 to now, ETC has fluctuated in price between $20.73 and $31.13. The coin’s current moving average (CMF) is currently -0.09, which indicates that bears are gaining dominance.

Nonetheless, the Stoch RSI is in the oversold region, which represents an excellent buying opportunity for investors and traders.

The increasing ascent of the bull-bear power indicator suggests a likely trend reversal. However, the Bollinger band’s central line is exerting greater downward pressure on the coin.

The 20-day to 100-day exponential moving averages (EMAs) also operate as dynamic barrier for the token, making a rebound conceivable.

ETC: Possible Recuperation?

Although it will be tough to produce a price reversal, bulls can yet defend the $23 support level. This will serve as a springboard for them to try the $27 resistance level. Traders and investors can also utilize the Stoch RSI numbers.

As previously stated, the Stoch RSI is in the oversold bottom half. This indicates that the coin is now undervalued and extremely inexpensive to purchase. Speculators and investors can purchase ETC at the current market price with a loss stop of $18.76.

However, this carries considerable risk because other indicators hint to a short- and long-term pessimistic outlook for ETC. But if the bulls can maintain the $23 support line, October will be an excellent starting place for a further rise to $29.71. We anticipate a strong bearish or bullish price movement in the following days and weeks.

ETC total market cap at $3.17 billion on the daily chart | Featured image from Investing.com, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.

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Ethereum Classic (ETC) Sheds 30% In Last 2 Weeks – More Pain Ahead?

Ethereum Classic (ETC) has been in the clutch of the bears as it has shaved off as much as 30% in the past two weeks. 

  • Ethereum Classic price down 30% in the past two weeks
  • ETC trading at $27.69 as of press time
  • ETC’s downturn opens up opportunities for short-term positions

ETC has dropped below the $33.9 zone barely two weeks ago and it seems Bitcoin is suffering the same fate as it failed to barrel past the key resistance of $19.7k. The selling pressure has been intermittently high in the crypto market. 

Coming from the larger Ethereum, ETC is predominantly viewed as secure as it is designed to alleviate key problems encountered with the larger or main token Ethereum, especially in line with amplifying speed and lowering fees. 

In fact, Ethereum Classic has evolved to be one of the most trusted and largest smart contract platforms as it is dubbed to be a valuable long-term investment to beef up and diversify one’s portfolio. 

Ethereum Classic Price Seeing Bearish Pressure

According to CoinMarketCap, ETC price has plunged by 1.01% or trading at $27.69 as of press time.

At this point, a bearish block is seen close to the $30 level. A climb by 8% will prove to invalidate the bearish outlook of ETC.

Traders should wait awhile for a price jump before entering any short position at the $27 to $29 range, which is considerably near $30.54, the key support zone.

Chart: TradingView.com

Judging by the daily and 12-hour timeframe, ETC is looking predominantly bearish with waves of lower highs and lower lows observed in the past couple of weeks.

With that in mind, traders of ETC can trade in sync with this trend and wait for any selling opportunities. 

Ethereum Classic’s RSI is below the 50 zone which has also been revisited as a resistance. 

Hence, the RSI depicts a downtrend. OBV also validates that sellers are dominating the market with lower highs seen for about three weeks so far hinting at a high selling volume. 

With this trend, ETC short sellers can rake in profit somewhere along the key support levels of $26.9 and $24.5. Now, a jump above the $30.7 zone can pump up a stop-loss order. 

ETC Social Metrics Down Since August 2022

Ethereum Classic had its strongest troughs in July, especially in terms of social metrics which is higher compared to September figures. Apparently, the social metrics of ETC such as engagement have dropped since August which also triggered a price drop. 

On the other hand, the uptick in Ethereum Classic’s development activities in August has improved social metrics for ETC. Despite the price decline, ETC is recovering in terms of social dominance which is a good place to start.

The downturn of ETC is said to be brought about by the bleeding of BTC as the king of cryptocurrencies wallows under the key resistance of $19.7. 

In order to recover, Bitcoin will have to rise above the $20.7k zone and then flip it favorably to a support zone. From a technical view, ETC’s vertigo is opening up opportunities for short-term positions. 

ETC total market cap at $3.8 billion on the daily chart | Source: TradingView.com

Featured image from Forkast, Chart: TradingView.com

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PoW Tokens Take A Hit: Ravencoin and Ethereum Classic Crash Over 20%

Ravencoin (RVN) and Ethereum Classic (ETC) were operated as a safe haven for miners seeking shelter from “The Merge” fallout. The event that completed Ethereum’s transition to Proof-of-Stake (PoS), “The Merge” locked out miners from the ecosystem.

Leading into the event, Ravencoin, Ethereum Classic, and other Proof-of-Work (PoW) cryptocurrencies were recording double-digit gains. The new participants onboarding the networks drove their hashrate to new highs, and their price followed as demand for PoW tokens followed.

However, as more miners flocked into these networks, it became more difficult to obtain rewards. In that sense, and with “The Merge” out of the way, miners might be seeking new alternatives to carry on with their operations and maximize their gains.

At the time of writing, Ravecoin and Ethereum Classic traded at $0.03 and $28, respectively. The cryptocurrencies record a 30% loss for RVN and a 22% loss for ETC over the past week. The tokens gave back a large portion of the gains obtained in previous weeks.

RVN’s price is trending to the downside on the 4-hour chart. Source: RVNUSDT Tradingview
Ravencoin (RVN) And Ethereum Classic (ETC) Might Be Losing Market Share

As the price of Ravencoin and Ethereum Classic trend to the downside, their hashrate trend lower which hinted at the current bearish price action. Miners that were prompting the value of these cryptocurrencies seem to be existing or diversifying their participation across multiple networks.

Data from CoinWars shows a decrease in the hashrate for Ethereum Classic and Ravencoin. The former has seen a steadier decline in hashrate since September 17th, two days after “The Merge”.

As seen below, ETC’s hashrate reached a high of 210 terahash/s (TH/s) and an all-time high of 220 TH/s before trending lower. Over the same period, ETC’s price recorded massive losses, as mentioned.

Ethereum Classic’s hashrate trends to the downside. Source: CoinWarz

Ravencoin hashrate saw sideways movement after an aggressive push to the upside. The network saw an all-time high of 20 TH/s before starting a descend into its current levels at around 15 TH/s. Both cryptocurrencies might experience losses if their network’s hashrate sustains their current momentum.

Ravecoin hashrate moving sideways and trending to the downside over the past week. Source: CoinWarz
Where Are Ravencoin And Ethereum Classic’s Hashrates Fleeing?

As computer power leaves Ravencoin and other PoW cryptocurrencies, it must be finding new networks to increase the miners’ chances of obtaining rewards. Data from Coingecko indicates that a couple of PoW tokens have benefited from this crash in price and hashrate from RVN and ETC.

The best-performing token seems to be CLO from Callisto Network. This project has seen a surge in trading volume and hashrate that has supported a 30% rally over the past 7 days. In the coming months, traders might benefit from frontrunning these spikes and crashes in PoW tokens hashrate.

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Get Forked: Ethereum PoW Forks Fall 66% In Just Days

Data shows the Ethereum Proof-of-Work forks have sharply fallen down in the few days following the merge.

Ethereum PoW Forks Have Fallen 66% In Just Five Days

According to the latest weekly report from Arcane Research, the ETH PoW forks have performed very poorly against ETH since the merge.

The much talked-about event transitioned Ethereum to a Proof-of-Stake consensus mechanism, essentially obfuscating the use of miners on the network.

However, some communities that were in favor of the old PoW-based system decided to create forks as the merge came approaching.

These new forks still rely on mining for reaching consensus on the network and have therefore naturally attracted the stranded ETH miners.

Here is a chart that shows how some of the most popular forks (ETC, ETHW, and ETF) have compared versus Ethereum in the last five days:

Looks like the worst performer out of these was ETF | Source: Arcane Research’s The Weekly Update – Week 37, 2022

As you can see in the above graph, Ethereum has been struggling since the merge, registering around 17% in negative returns.

The PoW forks, however, have been even worse. ETHW has noted losses upwards of 66%, while ETF investors have been yet deeper into the red with their holdings going down by more than 72% during the period.

The best of this bunch was Ethereum Classic, being down “only” 25% in the last five days. This performance was much better than the other two forks, but still noticeably lower than ETH’s returns.

The report notes that this wasn’t something unpredictable as the forks were expected to struggle with amassing any meaningful adoption and to view almost no significant DeFi activity.

The current selling pressure in these cryptos is likely coming from Ethereum holders selling off their airdrops, as per the report.

ETC saw a large amount of ETH miners connecting to the network, leading to a hashrate, and hence a difficulty, explosion for the coin.

Since Ethereum Classic’s miner revenues are less than $1 million per day, while they were more than $20 million for ETH, mining the crypto isn’t viable on the same scale as ETH’s in the long term.

ETH Price

At the time of writing, Ether’s price floats around $19.1k, down 5% in the last seven days. Over the past month, the crypto has lost 10% in value.

The below chart shows the trend in the price of the coin over the last five days.

The value of the crypto seems to have failed to recover from the plunge a few days back | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research

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Post-Merge Profit-Taking Cuts 13% Off Ethereum Ratio Against BTC

We’re in a post-merge world, and the lessons keep arriving. As it turns out, the mythical Merge was a sell-the-news event for Ethereum. Technically, the event was a success and Ethereum kept a 100% uptime as optimistically predicted. Economically, the asset has been bleeding for the whole post-merge season. As a result, Ethereum lost ground against bitcoin, and bitcoin dominance is back up.

Let’s go to Arcane Research’s The Weekly Update for the exact stats and numbers: 

“Since the merge, Ether (ETH) is down 17% in USD and down 13% compared to BTC, with ETHBTC currently trading at 0.07. ETH has found support at 0.07 ETHBTC, which represents the average ETHBTC price over the last 365 days.”

Will this become a tendency or are these just the post-merge jitters? 

The Post-Merge Post-Mortem

For a rational analysis, let’s quote The Weekly Update:

“Ether traded idly after the merge, and volatility remained low until U.S. markets opened down. The ETH blow was related to a correlated environment to risk assets, but excess leverage from long traders contributed to exacerbating Ether’s relative underperformance versus BTC.”

And the fact of the matter is that the old adage “buy the rumor, sell the news” applies perfectly here. Fuelled by hype, Ethereum’s price ballooned before the event. It was still far away from its all-time high of around $4,8K, but $1.7K was great for the market we’re in. The asset outperformed bitcoin and threatened its dominance. It was overbought, though. Post-merge, people sold and ETH is now in a downtrend. Textbook behavior that shouldn’t surprise a soul.

The chart to watch, though, is that of Ethereum’s issuance. The main difference between the post-merge Ethereum and its predecessor is that the new coin will be much more scarce. And that could affect the price tremendously.

ETH price chart for 09/21/2022 on Bittrex | Source: ETH/USD on TradingView.com
State Of The Ethereum Forks

One of the drivers of the pre-merge rally was the expectation that there might be forks and there might be airdrops. Two brand new Ethereum forks emerged from the messy situation. Those two suffered the most during this post-merge period. Back to The Weekly Update:

“Ether has not struggled in isolation, Ether forks have experienced severe headwinds, and both ETHW and Poloniex’s competitor fork EthereumFair (ETF) have seen more than two-thirds of their valuation slashed since launch.”

This brutal smackdown was to be expected. All forks generate something akin to an airdrop, as people received the equivalent to the ETH they had in ETHW and ETF. Users exchanged that free money for harder currencies pretty fast. And now it’s time for those forks, who the all-powerful stablecoins don’t support, to prove their worth.

An older fork was also in the news because of the merge and has been struggling as much as its cousins. 

“Ethereum Classic has also underperformed versus ETH. Amid the merge, many miners migrated to ETC, leading ETC’s hashrate to peak at 300 TH/s. However, as the difficulty has increased in ETC, the hashrate in ETC has declined to 186 TH/s”

Some people thought that Ethereum Classic, who remains a Proof-Of-Work blockchain, was going to thrive post-merge. So far, they’ve been proven wrong. But we’re in the early innings and things might drastically change for old reliable Ethereum Classic. 

ETHBTC price chart on Binance | Source: The Weekly Update
Conclusions

Apparently, the merge was a success but the price didn’t hear the news. However, we should take into account that September is usually a bad month for cryptocurrencies in general. That, mixed with the classic “buy the rumor, sell the news” behavior have ETH against the ropes. For now.

Featured Image by Gerd Altmann from Pixabay | Charts by TradingView and The Weekly Update

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Displaced ETH Miners Seek Refuge In Ethereum Classic, Ravencoin

The Ethereum Merge was an incredibly anticipated upgrade, with good reason. It not only drastically increased the number of transactions that the network could handle, but it also greatly diminished the energy consumption of the network. However, Ethereum miners have found themselves as collateral damage in the upgrade as there is no longer a need for their highly specialized mining hardware. Given this, ETH miners have had to find alternatives for this hardware.

The Great Exodus

In less than one hour, Ethereum miners, who had been one of the most important parts of the network, had found themselves obsolete. With the move from proof of work to proof of stake, there was no longer a need for highly sophisticated machines as the network now makes use of validators to confirm transactions.

Now that the Merge is complete, Ethereum miners are unable to mine the cryptocurrency and have instead moved to other GPU mineable tokens. This exodus from the Ethereum network has sent the miners into the arms of networks such as Ethereum Classic and Ravencoin.

ETH falls to $1,500 | Source: ETHUSD on TradingView.com

Ethereum Classic has proven to be a natural destination for the miners since it is a fork of the original ETH network. As for Ravencoin, the team had been pushing hard to onboard displaced ETH miners to its network. This move has seen interest increase in both networks and has triggered massive growth in both in such a short time.

Ethereum Classic, Ravencoin Hashrate Soar

At the time of this writing, it has only been a couple of hours since the Ethereum Merge was completed, but there are already massive changes happening across the market. As displaced ETH miners move into other coins such as Ethereum Classic and Ravencoin, both networks have seen their hashrate soar.

In the last 24 hours alone, the hash rate has more than doubled across both networks. Ethereum Classic had already been recording accelerated growth since the date for the Merge was announced. On Wednesday, its total hash rate had sat around 52 TH/s, but by the early hours of Thursday, the hash rate had grown to more than 102 TH/s.

The same is the case for Ravencoin during this time. Similar to Ethereum Classic, its hashrate is up more than 100%, rising from around 7.4 TH/s on Wednesday to more than 14 TH/s on Thursday, after peaking at 14.8 TH/s.

However, despite the move to these networks, it is still not enough to accommodate the total mining power of ETH. Experts estimate that all GPU mineable coins will only be able to absorb 15% of the total ETH hash rate before mining the coins stop being profitable. 

Featured image from Forkast, chart from TradingView.com

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Bitcoin Dominance Reaches All-Time Lows As The Merge Nears

The mythical merge is almost here. Ethereum’s transition from Proof-Of-Work to Proof-Of-Stake is the most talked about event in crypto at the moment, and money is flowing to that blockchain. That, in turn, translated into a decrease in bitcoin dominance. That metric measures the percentage of the whole crypto market that bitcoin represents, and it’s currently “down at levels not seen since 2018.” Which makes sense. Because the merge is almost here and everyone placed their bets.

According to Arcane Research’s The Weekly Update, “the all-time low occurred during the ICO craze in January 2018.” Which makes sense, because ICOs were the talk of the town at the moment. That impetus eventually fizzled out, however. Can we expect the same out of the merge? On the one hand, this is a structural change on Ethereum as a whole, so it’s more important than ICOs ever were. On the other hand, stakes are higher and there are no guarantees that the merge will work out as planned.

The Merge Isn’t The Only Factor

Before advancing, let’s explore Arcane Research’s stats:

“September has started with varying returns among our indexes. Bitcoin has started the month the worst and is down 1%. All other indexes are in the positive territory, with the Large Caps gaining 1%, the Small Caps 2%, and the Mid Caps 7%.”

So, everyone and their mothers gained ground on bitcoin these last few weeks. Especially the Mid Caps, with Ethereum Classic as an unlikely leader. This almost forgotten cryptocurrency is also gaining ground because of the merge. When Ethereum turns from Proof-Of-Work to Proof-Of-Stake, a whole industry will disappear. The new system doesn’t require miners, so all of them are exploring their options and the original Ethereum seems to be the big winner in this scenario.

However, there’s another Classic cryptocurrency that grew even more. Back to The Weekly Update:

“While the large caps’ performances have been mostly flat over the previous seven days, we see massive increases in some of the smaller coins. Terra Luna Classic surged by 222% amid plans to revive the chain, while Ethereum Classic increased by 20%.”

So, even though it’s a big factor, it’s not all about the merge. Arcane Research offers even another important factor:

“An essential caveat of the bitcoin dominance sitting close to an alltime low is that stablecoins are far more significant now than the last time bitcoin showed this low dominance. Excluding the USDT and USDC from the equation, we see that bitcoin still makes up half of the crypto market.”

Market Cap BTC Dominance on CryptoCap | Source: TradingView.com
Bitcoin Dominance Over The Last Few Months

We at NewsBTC constantly monitor bitcoin dominance so you don’t have to. The field is more volatile than you might think. Two months ago, our report highlighted the following:

“Over the last couple of days, bitcoin has watched its market dominance declined by more than 2%. This market share was quickly soaked up by Ethereum, which has seen its dominance rise in this time period. It added more than 2% to go from straggling around $16% to its current dominance of 18.9%.”

However, last month the report’s title was “Bitcoin Dominance Grows As Crypto Risk Appetite Remains Low.” The reason for this was:

“Arcane Research noted that the overall weakness in the sector is driven by a “natural rotation as traders seek safety in a falling market”. The increase in Bitcoin dominance has been accompanied by a rise in stablecoin total market share.”

So, the bitcoin dominance metric is a roller coaster and the merge approaching generates extra volatility. At the moment, according to Arcane Research, ETH is at 20.35%, and BTC is at 38.26%.

Before we go, there’s one last factor to analyze. On September 13th, the US will release its CPI for August. The estimation is that the interest rate will hike by 75bps, but the reality is that anything can happen. And the announcement will come in tandem with the merge. Fun times ahead.

Featured Image by Chris Sabor on Unsplash | Charts by TradingView

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Ethereum Classic Outperforms Others In 24 Hours With 19% Gains

Crypto assets’ prices have recorded more volatility in recent times. There have been some spikes and pullbacks in the price of many. For instance, the beginning of this week saw Bitcoin moving farther from its $20K mark. 

Bitcoin lost its hold on the $20K mark on September 2, closing the market at $19,969. Since then, the crypto has struggled to remain afloat with little rallies and dips. Also, Ethereum didn’t fare too well until September 6.  

Related Reading: Bitcoin Struggles To Claim $20,000 Mark Amid Bear Market

The Bellatrix upgrade to take place the same day pushed its price by 4.3%, enabling it to climb above the $1500 mark to $1655. But ETH wasn’t the only crypto affected by the upgrade hype. Ethereum Classic ETC also felt the positive market sentiment pushing its price above $40. 

Ethereum Classic Gains As Merge Approach   

ETC is currently trading at $41.240, indicating more than a 19% price increase in 24 hours. The coin has been holding its grip on $32 from August 31 to September 5. It even recorded a brief pullback to $31 and an intraday high of $39 on September 5.

In twenty-four hours, ETC surged by more than 19% as the community awaited the Bellatrix upgrade on Ethereum ETH. As day trading continues, ETC has continued to skyrocket, and there’s a likelihood of increased gain before the close of the market. 

ETC’s price loses gains and currently fluctuates around $36. | Source: ETCUSD price chart from TradingView.com
Will Miners Move to Ethereum Classic? 

As the Merge approaches, ETC is positioned to receive more attention from miners and investors. Being a proof of work network, it might be the next option for Ethereum miners after the upgrade. 

Recall that mining activities will cease to exist once Ethereum migrates from PoW to proof of stake. The event-tagged Paris upgrade will be the last to push the network into the long-anticipated newer version. 

According to the plans, a difficulty bomb on the network will increase the energy and computational requirements of validating transactions after the Merge. With the increased requirements, miners’ interest will wane as the activities will no longer be profitable. 

That’s why some miners earlier announced plans to fork the Ethereum network. The aim was to maintain the proof of work network and continue their mining activities. However, this plan received a mixed reaction in the community as many supported it while others reacted negatively. 

What’s ETC Price Prediction?

By analyzing the current price movement for ETC, the token’s future price might become more positive contrary to what analysts predicted for 2022. In addition, if the miners move to continue their operations on ETC, the Ethereum fork will see more traction. 

Related Reading: WATCH: Ethereum Gains Momentum Ahead Of The Merge | ETHUSD September 6, 2022

Also, analysts have mentioned that the move to ETC will increase its hash rate leading to a drop in risk exposure. Recall that the development team of Ethereum moved to the latest version after the hard fork in July 2016. That’s why ETC has continued to rely on diverse contributors to remain relevant. 

But with increased miners’ participation, more developers will join, and investors’ interest will grow. Also, the chances of 51% attacks will reduce, pushing the network to a better footing and greater attention in the crypto space. 

Featured image from Pixabay and chart from TradinView.com