It appears we are starting off this week with a continuation of the same trends we saw in play yesterday. More specifically, the Ethereum Classic pump is far from over, even though the currency itself may not necessarily warrant this price rise. Over the past 24 hours, ETC appreciated by another 26.21%, pushing the Ethereum Classic price to US$15.2. It is evident this trend may continue for some time, although it will run out of steam eventually.
It is always interesting to see if an altcoin rises in value based on development updates or just speculation. Speculation usually results in pump-and-dump schemes which can run for a few hours or even multiple days. We saw a Bitcoin Cash pump last for about four days last week, which was rather impressive. It is possible Ethereum Classic is experiencing a similar cycle, as its volume is coming from the exact same exchange right now.
As it happens, the Ethereum Classic price has risen from US$10 to US$15.2 for no apparent reason. Although the current price appreciation is a direct reaction to Ethereum Classic having lost a lot of value over the past few weeks due to the Bitcoin price movements, this major surge isn’t warranted whatsoever. Given the small volume needed to artificially inflate the Ethereum Classic price these days, a lot of profit can be made with very little effort. Once profit-taking occurs en masse, this value will come down once again.
For the time being, however, no one knows exactly when that will happen. Remarkably, the trading volume is picking up and ETC has reclaimed a spot among the top 10 cryptocurrencies ranked by market capitalization. One could argue the market cap of ETC is far beyond what it should be. Additionally, some of the coins in the top 10 are vastly undervalued and have been for quite some time now. Cryptocurrency continues to grow in general, and all cryptocurrencies will see some form of an uptrend sooner rather than later.
Speaking of the Ethereum Classic trading volume, over US$588.5 million worth of ETC has changed hands in the past 24 hours. This is a pretty solid number for an altcoin which serves a very limited purpose. It also shows how this price pump has been attracting a lot of attention, even though the vast majority of volume comes from one South Korean exchange in particular. That in itself is not surprising whatsoever, as we have seen this particular platform generate a fair few pump-and-dump cycles for different cryptocurrencies as of late.
By now, most people have figured out this exchange is none other than Bithumb. It is seeing over 53.13% of all ETC trading right now. Coinone, sitting in second place, has generated another 17.15%. It is evident that without these platforms, there would be no Ethereum Classic price action whatsoever. Moreover, it’s clear this is a classic pump-and-dump scheme that will end sooner or later, as Bithumb traders will move on to the next coin in the coming days. It is unclear which one that will be, although Dash appears to be a likely candidate. Time will tell what the future holds.
Speculators have made a lot of money from the ongoing Ethereum Classic price pump; that much is evident. It is certainly possible we will see a new all-time high set for ETC if this trend continues. Then again, the inevitable correction will push the price back down to its usual value of US$10 or less. Remember to take profits whenever you can before this trend reverses in the near future. It is good to see altcoins recover, but the current trend is pretty blatant and not fueled by any fundamental developments whatsoever.
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