Ethereum Classic Saw a 280% Increase in Hash Rate After Ethereum Merge
The cryptocurrency rose after the Ethereum merger, but has since bounced back
ETC lacks a directional bias as price falls
Ethereum has finally made a successful transition from a Proof-of-Work blockchain to Proof-of-Stake. Immediately after the shift, tokens from PoW platforms such as Ethereum Classic ETC/USD rose. The cryptocurrency has since retreated with losses of 5.28% in the past 24 hours. Does that indicate a lack of sustainability in profits after the merger?
Ethereum Classic was one of the platforms expected to attract PoW miners after the merger. Thursday, immediately after the Merge, the hash rate on the protocol rose to 183 terahashes per second. That suggests a 280% increase in crypto mining productivity in just 24 hours. However, it should be noted that Ethereum Classic hashrate has increased by 500% in 30 days. Miners had already positioned themselves for the post-merger situation. The hash rate on other PoW blockchains, such as Ergo blockchain and Ravencoin, has also increased.
There are possible scenarios to explain the depleted gains in ETC after the Ethereum merger. First, ETC is trading near its 5-month high, despite most tokens remaining subdued. While we cannot discount further gains after the merger, the price may have already factored in the developments.
A more pervasive factor hindering ETC’s post-merger growth is crypto sentiment. Across the board, cryptocurrencies are in the red following more-than-expected inflation. Therefore, the potential benefits of ETC should be explored within the broader crypto sector.
ETC price movements and forecast after the merge
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Technically, Ethereum Classic lacks a directional move. The price has fallen below the moving averages but is trading at a support level of $34. ETC must overcome a further decline below the support to consider a bullish bias.
Ethereum Classic has witnessed an increase in hash rate after Ethereum Merge. The price has yet to reflect mining output and lacks a directional bias.