• Ethereum Classic (ETC/USD) has seen a surge in price in the last two days, up 18% in the week.
• Ethereum Classic broke above a crucial descending trendline, potentially due to an increase in hash rate and miner activity.
• Despite the bullish sentiment, Ethereum Classic still faces bear pressure at $19.
Ethereum Classic (ETC/USD) has been the subject of much bullish interest in the last two days. Despite a minor intraday dip of 1% on Friday, the price of Ethereum Classic still managed to gain 18% in the week. This surge began on January 04, 2023, as the cryptocurrency broke above a crucial descending trendline.
The upward movement of Ethereum Classic can be attributed to the increased hash rate of the network. Ethereum Classic is a Proof of Work (PoW) protocol, and the shift of Ethereum to the Proof of Stake (PoS) protocol, also known as the Merge, was expected to increase the demand for PoW miners on Ethereum Classic. This was initially successful in pushing up the price, however, the impact eventually waned.
The recent gains have reignited hopes of miner activity on Ethereum Classic. CoinWarz data shows that the hash rate went from 97.5975 TH/s on December 27 to 111.7497 TH/s on December 30. This could indicate increased miner activity and ETC transactions.
Bullish sentiment for Ethereum Classic persists, however, buyers must exercise caution at the current price level. Ethereum Classic still faces bearish pressure at $19, and the cryptocurrency has yet to break out of the $20 resistance. Additionally, Ethereum Classic’s hash rate is still lower than its pre-Merge levels, and it remains to be seen if the current surge in hash rate will be sustained.
Overall, Ethereum Classic has the potential to continue its surge if the hash rate remains high and miner activity increases. However, investors should exercise caution as the cryptocurrency is still subject to bearish pressure at $19.