Ethereum Classic (ETC): Why Surging Hashrate Fails to Prevent Price Plunge

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ETC's Remarkable Hashrate Achievement

As August draws to a close, the crypto community's attention shifts to Ethereum's [ETH] Merge event. In this transitional period, proof-of-work (PoW) cryptocurrencies like Ethereum Classic [ETC] are positioned to benefit from the network changes.

ETC recently achieved an extraordinary milestone—an 80% overnight surge in hashrate between August 30-31, peaking at 40.02 TH/s according to CoinWarz. Though slightly lower than its August 29 peak, this still surpasses previous all-time highs (ATH).

Key network metrics during this period:

👉 How does hashrate affect cryptocurrency value?

The Price-Hashrate Paradox

Despite the network strength, ETC's price tells a different story:

Possible reasons for this divergence:

  1. Pre-Merge uncertainty: Investors may be hedging positions
  2. Temporary miner migration: ETH miners testing ETC infrastructure
  3. Market sentiment shift: Reduced speculative interest

Whale Activity and Development Signals

On-chain metrics reveal potential silver linings:

These factors suggest ETC could still capitalize on its PoW status when ETH transitions to PoS. However, traders should monitor:

FAQ: Understanding ETC's Market Dynamics

Q: Why does hashrate increase while price drops?
A: Miners may be testing infrastructure pre-Merge, creating temporary network activity without proportional investor demand.

Q: Will ETC replace ETH for GPU miners?
A: ETC becomes the largest PoW smart contract platform post-Merge, but profitability depends on price stability and network difficulty.

Q: How long will the hashrate surge last?
A: Expect volatility until Ethereum's PoS transition completes; long-term sustainability requires organic ecosystem growth.

Q: Is now a good time to invest in ETC?
A: While technicals show strength, conduct independent research considering market risks and your investment horizon.

👉 Essential tools for crypto fundamental analysis

Strategic Considerations for Traders

  1. Monitor miner activity: Sustained hashrate indicates network health
  2. Watch ETH developments: ETC's value proposition ties to Ethereum's transition
  3. Evaluate risk-reward: Historical support/resistance levels vs. Merge uncertainty

The coming weeks will test ETC's ability to convert temporary miner interest into lasting ecosystem growth. While technical achievements are impressive, price recovery ultimately requires balanced supply-demand dynamics and sustained utility adoption.