Coinbase Effect: Ethereum Classic Price Surges Ahead of Listing
The Ethereum Classic price rocketed to a four-month high on Sunday. | Source: Shutterstock
The cryptocurrency Ethereum Classic moved ahead of the market in recent hours when it surged by a further 15% on top of Wednesday’s 20% gains and is now trading at around $13.80 on Bitfinex.
The upward gains follows crypto exchange giant Coinbase’s announcement, posted on Twitter, indicating that ETC would be available for purchase and trading on that platform as from 5PM PST on Thursday (later today).
Ethereum Classic was at a two-month high of $18.50 earlier this month, the same level it had reached on 7 July when the Coinbase announcement made further rounds. The listing on Robinhood also had an effect in boosting ETC’s price.
Ethereum Classic also shot up in price before rumors that it was to be listed on Coinbase. This happened a few weeks ago when on June 21st, Coinbase had announced that they would soon be listing the currency and that set off a frenzy of buying which saw the price skyrocket. In fact, throughout mid-June, ETC’s price fluctuated from a high of around $19.80 to around $17. However, it was still a victim of the recent crypto crash and had fallen to a 2018 low of $11 as recently as a few days ago.
A look at ETC’s price movements this year could also be pertinent.
The historic all-time high for Ethereum Classic currently stands at $45.51. Other peaks include $42.38 as recorded at the end of February and $24.70 as recorded at the start of May.
Before reaching its all-time high of $45.51, Ethereum Classic moved from $26.99, seeing an increase of 68%. Likewise, before peaking at $42.38, Ethereum Classic moved from $25.92, seeing an increase of 63%. Finally, in May, before peaking at $24.70, Ethereum Classic jumped from $16.15, seeing an increase of 52%. On average, that is a 61% increase for Ethereum Classic.
However, one should also tread with caution when making predictions that the Ethereum Classic price will continue to rise since as often happens in these situations, a massive dump will likely occur after the actual Coinbase listing. Investors usually dump their coins en masse thus creating a price dip with traders then going in to snap up the currency at a much lower price then it was before the original announcement. The price should eventually creep up to pre-listing levels as liquidity and demand eventually stabilize.
Featured image from Shutterstock. Charts from TradingView .
