Why Ethereum Classic’s [ETC] post-merge ‘high’ is wearing off

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The tran­si­tion of the Ethereum net­work into a proof-of-stake con­sen­sus mech­a­nism on 15 Sep­tem­ber caused some Ethereum-linked assets to record growth. 

Fol­low­ing the merge, Ethereum Clas­sic saw a boom in min­ing activ­i­ty on its net­work as for­mer min­ers on the Ethereum main­net sought new homes. 

Accord­ing to data 2miners.com, the surge in min­ing activ­i­ty on the net­work caused the chain to set a new hashrate all-time high. 

The price of its native coin, ETC, also ral­lied by 11% fol­low­ing the merge. 

How­ev­er, com­ing down from its post-merge ‘high,’ Ethereum Clas­sic and the ETC coin have seen a decline in the past few days.

In case you thought the rally was real

Accord­ing to data from Min­er­stat, the Ethereum Clas­sic hashrate stood at 199.4624 TH/s.

Fol­low­ing the merge, it ral­lied to an all-time high of 296.0848 TH/s. How­ev­er, in just four days, the min­ing hashrate on the net­work declined by 48%. 

This decline could be attrib­ut­able to the fur­ther migra­tion of the min­ers to the new­ly forked Ethereum proof-of-work net­work (ETH PoW). 

Accord­ing to data from OKLink, 1,716,444,102 trans­ac­tions have been processed on the forked net­work since its launch on 15 September. 

Source: Min­er­stat

Apart from the decline in hashrate on the net­work, fur­ther data from Min­er­stat showed a drop in min­ing dif­fi­cul­ty on Ethereum Clas­sic since the merge. 

Fol­low­ing the merge, dif­fi­cul­ty on the net­work clinched an all-time high of 3.2943P by 16 Sep­tem­ber. How­ev­er, at 2.6068P at press time, it has since declined by 26%.

Source: Min­er­stat

Even ETC did its thing

As of this writ­ing, the price per ETC was $28.24, accord­ing to data from Coin­Mar­ket­Cap. The 11% price ral­ly fol­low­ing the merge was fleet­ing as the asset since lost the tem­po­ral gains and some more. Since the Ethereum merge, the price of ETC has declined by 26%.

Fur­ther­more, data from Coin­Mar­ket­Cap showed that the price of ETC fell by 17% in the last 24 hours. Thus, mak­ing it the cryp­to asset with the most decline with­in that period.

Source: Coin­Mar­ket­Cap

Despite the severe dec­i­ma­tion in the price of ETC, its trad­ing vol­ume ral­lied by 122% in the last 24 hours. The price/trading vol­ume diver­gence indi­cat­ed buy­ers’ exhaus­tion which is com­mon when coin dis­tri­b­u­tion is significant. 

In case you are look­ing to ape in and “buy the dip,” it is imper­a­tive to note that ETC ini­ti­at­ed a new bear cycle on 16 Sep­tem­ber after the merge. The posi­tion of the asset’s Mov­ing aver­age con­ver­gence diver­gence (MACD) revealed this. 

Increased dis­tri­b­u­tion of ETC was under­way at press time. The Chaikin Mon­ey Flow (CMF) was posi­tioned below the cen­ter (0.0), indi­cat­ing a ral­ly in sell pressure. 

The Direc­tion­al Move­ment Index (DMI) also showed that sell­ers con­trolled the mar­ket, with the sell­ers’ strength (red) at 25.85 posi­tioned above that of the buy­ers (green) at 16.75.

Source: Trad­ingView

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