Ethereum Classic Gains 60% In One Week, Why The Merge Could Push Its Price Higher

Reynaldo Marquez

3 years ago

2 mins read

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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.

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.

Ethereum Classic ETC ETCUSDT — ETC trends to the upside on the 4-hour chart. Source: ETCUSDT Tradingview

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/yr
Provide ~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

— pseudo (on farcaster) 📜🇺🇦 (@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.

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.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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