In addition to gaining momentum from the overall cryptocurrency market recovery, Ethereum Classic (ETC) is seeing significant gains driven in part by network activity on the main Ethereum blockchain, specifically the confluence level update scheduled for September. Indeed, this factor appears to be affecting the price of ETH while pushing for a breakout of the ETC price.
The presence of ETC bulls has been felt over the past seven days, with the price of Ethereum Classic showing strong bullish momentum, marking the end of the week of trading in a consolidation phase.
As a result, Ethereum Classic, the successor to the original Ethereum blockchain, has gained 51.34% over the past seven days, trading at $22.51 at press time, according to data from CoinMarketCap.
In addition, ETC is ranked third among the top performing cryptocurrencies over the past seven days behind Lido DAO (151.03%) and Polygon (58.73%).
The impact of the merger on the price of ETC
The Merge upgrade is likely to benefit assets like ETC as it allows Ethereum to move from the energy-intensive PoW (proof of work) consensus mechanism to a PoS (proof of stake) protocol. As such, ETC has the potential to host migrating Ethereum miners as they will need minor upgrades to start mining on Ethereum Classic. See also: Algorithmic stablecoins are under the scrutiny of political intellectuals.
As the merger approaches, miners moving to ETH are likely to drive up the price of Ethereum Classic. Most of them expect the current hash rate destined for Ethereum to also move to the ETC network after the upgrade, as this is the easiest choice for miners to migrate as it avoids their hardware becoming useless.
After these advances, the main question will be whether ETC can sustain this momentum. Sustainability will likely be ensured if more and more inventors continue to buy ETC. However, investors should also be prepared for strong selling pressure, which could trigger a significant pullback.
Similarly, the news about the Merge upgrade seems to be affecting the value of Ethereum, which also surged last week.
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Passionate about cryptocurrencies and DeFI, Thomas brings international news on the subject!