Ethereum Classic Price Jumps 12%: Shapella Upgrade Fuels Rally
• Ethereum Classic (ETC) price has jumped by more than 53% from the lowest level this year.
• The bullish break-out is due to the cryptocurrency rally, falling US inflation, and Shapella upgrade of Ethereum.
• Analysts believe that many investors will now move to Ethereum Classic as it has a better regulatory environment.
Ethereum Classic Price Rises
Ethereum Classic (ETC) price continued rising on Thursday as the recent cryptocurrency rally regained steam. The coin jumped to a high of $22.47, the highest level since March 18 of this year and has now jumped by more than 53% from the lowest level this year.
Catalysts for ETC Price Increase
There are three main catalysts moving the ETC price this week namely; Bitcoin’s price rally which saw it jump above $30,000 for the first time since June last year, American consumer inflation data showing a drop in prices, and Shapella upgrade of Ethereum which made it possible for stakers to withdraw tokens worth over $37 billion.
Impact of Inflation Data on ETC
The recent American consumer inflation data published on Wednesday showed that headline consumer price index (CPI) dropped to 5.0%, the lowest level since 2021 while core inflation also dropped on a month-on-mom basis. This data has brought about speculation that Federal Reserve may soon pivot by pausing rate increases and leaving them unchanged for some time.
Shapella Upgrade Impact
The Shapella upgrade activation made it possible for Ethereum stakers to be able to withdraw their tokens easily from the network leading to positive sentiments towards Ethereum Classic which is seen as having better regulatory environment compared with other cryptocurrencies like Ethereum due its controversy and regulatory concerns by Securities and Exchange Commission who view all tokens with a staking element as securities.
In conclusion, there are several factors that have contributed to the current rise in Ethereum Classic (ETC) prices including; Bitcoin’s rally above $30k mark, falling US inflation rates as reported in CPI data released yesterday as well as Shapella upgrade activation making it possible for Ethereum stakers to withdraw their tokens easily contributing positively towards sentiment towards ETC due its better regulatory environment compared with other cryptocurrencies like Ethereum due its controversy and SEC viewing all tokens with staking elements as securities