- Ethereum Classic has surged to a new ATH of $167.09
- The price surged was preceded by several months of hibernation
- Several factors could be driving the sudden price surge
Ethereum Classic has surged over 250% over the last week to a new all time high of $167.09. Notably, the sudden surge was preceded by a long hibernation as shown below.
The recent spike in ETC price has some investors wondering what has sparked the sudden rise. Several experts and analysts have put forward a few reasons that could be driving the price rise. The top three reasons driving the ETC price rise include, but are not limited to:
1. Altcoin Season
Several analysts have been predicting an altcoin season since the year 2021 started. In fact, Bitcoin price has remained in the $50,000 to $60,000 range for a while. This has led several daring investors to look for underrated altcoins that could lead to a quicker profit realization.
In addition, a marked rise in overall crypto adoption could have also positively impacted the altcoin. Analyst and YouTuber Sheldon Evans has often argued that cryptocurrency is a positive-sum game. This means that instead of having only one super crypto the rise of one leads to the rise of all cryptos.
2. Imminent Ethereum 2.0 Upgrade
Ethereum Classic currently closely resembles its sister blockchain Ethereum. However, once the Ethereum 2.0 upgrade goes live the two blockchains will differ in protocol. While Ethereum will move to a Proof of Stake (PoS) protocol, ETC will retain the Proof of Work protocol. Speculators believe that ETC will provide a good alternative to the PoS network which will boost ETC’s relevance.
3. Sentimental Value
Similarly, some analysts believe that ETC has a high sentimental value. This is due to the fact that ETC maintains the original Ethereum blockchain. While ETC’s utility does not match the current ETH blockchain, however, it represents a piece of blockchain history.
Despite these compelling reasons, time alone will tell if the altcoin will be able to defend its position and sustain its current bull run.
At the time of writing, Ethereum Classic is trading at $121.23 with a 24 hour trading volume of $25,220,546,385.
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