- Ethereum Classic price held steady on Thursday.
- ETC has formed a bullish flag pattern on the daily chart.
- Its hash rate soared to the highest level on record.
Ethereum Classic price has done well in the past few weeks as investors have focused on The Merge. ETC rose to a high of $38, which was about 205% from the lowest level this year. Its market cap has jumped to more than $5 billion.
Why is ETC soaring?
Ethereum Classic price has been one of the biggest winners of Ethereum Merge. Indeed, ETC has risen by over 205% from its YTD low while Ethereum has jumped by about 70% in the same period. Other proof-of-work coins that have emerged as winners of the event are Kadena and Ravencoin.
It is unclear why ETC price has jumped sharply during this period. Analysts believe that it will become a key beneficiary of the merge as investors move to proof-of-work alternatives to Ethereum. Besides, Ethereum and Ethereum Classic have similar technologies.
Ethereum Merge happened successfully on Thursday. As a result, Ethereum has transitioned from being a proof-of-work (PoW) into a proof-of-stake (PoS) platform. As such, instead of being mined using computers, new blocks are being confirmed using a number of validators who are spread around the world.
Meanwhile, activity in Ethereum Classic has been in a strong bullish trend as miners move to its network. A good way to look at this is to consider its hash rate. According to 2Miners, its hash rate has jumped to 288.70 TH/S, which is its all-time high. This is notable since its hash rate was less than 80 TH/S a few weeks ago.
A high hash rate is a sign that there is increased mining activity, which makes its network highly secure. Analysts believe that the hash rate will likely continue rising as activity in its network soars.
Ethereum Classic price prediction
The daily chart shows that ETC price has made a spectacular comeback in the past few days. Recently, however, the coin has remained in a tight range. It has also moved slightly above the 25-day and 50-day moving averages.
Notably, it has formed a bullish flag pattern that is shown in black. Historically, a bullish flag is usually a bullish sign. Therefore, there is a likelihood that Ethereum Classic will have a bullish breakout soon. If this happens, the next key resistance level to watch will be at $50.
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