Ethereum Classic Price Surge Confirms FOMO Trumps Common Sense

Belgium (CoinChapter.com) — All cryptocurrency markets are resuming their bullish momentum established in recent weeks. One of the surprising assets is Ethereum Classic, or ETC. It is a very bullish market right now, even though the uptrend is not necessarily backed by anything substantial. 

Ethereum Classic Price Surges

As various altcoins have shown tremendous market momentum lately, it is only normal that some nearly forgotten currencies note an uptrend. Ethereum Classic, a fork of Ethereum, is not a project that gets much attention from investors and enthusiasts. Although ETC has a loyal community, its technology is not too different from what other projects bring to the table.

The recent Ethereum Classic price momentum has driven the price up by 569.6% in the past 30 days. A massive gain for a project that no one seems to talk about unless its price heads in either direction. Currently valued at a market cap of $16.63 billion, one ETC is worth $107. Depending on whom one poses the question to, the current price may only be a stepping stone to higher values to achieve in the future.

ETC Price Momentum And Predictions

Per the chart below, there is strong Ethereum Classic price momentum in recent weeks. The ETC value has risen from $30 to $113 in quick succession, which wasn’t necessarily expected. When prices of altcoins quadruple out of the blue, there will always be concerns regarding a pump-and-dump scheme. Ethereum Classic’s value is – for the most part – speculative rather than based on fundamentals, thus there will be a limit as to how high the price can go.

Several traders and enthusiasts expect big things for the ETC price in the coming days and weeks. Twitter is not a place for financial advice by any means, yet people are more than willing to share their ideas. Aj expects the price to hit $300 in the future, a price target that may not necessarily be feasible. 

Houston, we’ve turned the moon green. Up next, $300! 🧑🏿‍🚀🌑🍾 #ETC #EthereumClassic pic.twitter.com/kc3xBLBt59

— Aj 🦂 (@Chief_Ekain) May 5, 2021

There is an interesting “conspiracy theory” provided by P-Funk. This user claims how the media sues Dogecoin to distract everyone from Ethereum Classic. Moreover, P-Funk shares price predictions putting ETC at $582 by year-end and $5,835 by 2032. However, there is no context for these price predictions, and the information needs to be taken with a few pinches of salt.

Is it me, or does it seem like the media is using #dogecoin to distract everyone from #EthereumClassic ?
Doge sees what, a high of $1? pic.twitter.com/xDzpmbKC6i

— P-Funk (@gadzooked1) May 5, 2021

The optimism on TradingView is a bit more modest. Skinwah is still expecting bigger things for ETC, although this user acknowledges $135 may prove a resistance point. Reaching that value may pose to be a challenge in itself, although cryptocurrency markets are mainly unpredictable. After such a strong run, pushing through to $135 is possible, although not necessarily a likely one. 

What is Driving Value?

As is often the case with altcoins, there are different aspects capable of bringing value to a currency. For Ethereum Classic, there is no recent development that stands out in recent weeks. It is a blockchain that can appeal to developers for various projects, but there are dozens, if not hundreds, of ecosystems doing the same.

Looking beyond the development aspect, the “big news” is how Grayscale continues to increase its exposure to Ethereum Classic. More specifically, the Ethereum Classic Trust recently increased its holdings by 55.46%. A substantial amount, especially when considering no other currency in Grayscale’s portfolio comes close. Such a change notes an increase in exposure for investors but is not necessarily indicative of future price gains.

05/05/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $49.8 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC $BAT $LINK $MANA $FIL $LPT pic.twitter.com/zUE9ZldkLe

— Grayscale (@Grayscale) May 5, 2021

Again, it seems as if Ethereum Classic will remain speculative in nature first and foremost. This is not uncommon among alternative cryptocurrencies. Enthusiasts need to understand that ETC’s blockchain has been subject to multiple 51% attacks in recent years. Trust in such a blockchain can erode quickly when incidents continue to happen regularly. Even when developers address these issues, permanent damage has been done to ETC’s reputation.

Closing Thoughts

Based on the numerous attacks affecting the ETC blockchain since its inception, it is remarkable to see people want to pay $113 or more for its native asset. There aren’t significant use cases or advantages of using ETC over Ethereum or other blockchains today. Speculation is ramping up and seems to stem from the recent Dogecoin price craze. 

From a speculation and investment viewpoint, Ethereum Classic poses a few exciting opportunities but also risks. The asset has seen a massive price explosion already, and it will come to an end eventually. Whether that will happen before or after hitting $135 – or a similar value – remains undetermined. Chasing profits is never advisable in this industry, however. 

Header image by Pixabay, chart by Tradingview.com.