etc ETC/USDthe native assets of ethereum classicexperienced a notable rebound Wednesday as its price surged from $15.64 to a giant green daily candlestick..
What happened:dubbing ethereum Ethereum/USD spin off etc Up more than 24% over the last 24 hours, it outperformed intraday gains at $19.52.
According to the blockchain analytics firm santimento, ETC is witnessing a massive rally. Not only is trading volume unusually high, but a large influx of short-selling by traders on exchanges suggests that the rally could grow further.
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The recent surge in prices may be due in part to the short squeeze. This usually happens when a large number of traders place a bearish bet on an asset, which instead increases in value.
Investors appear to be anticipating a possible regulatory crackdown on Ethereum later this year, which may explain why the price of Ethereum Classic is soaring.
Last year, Ethereum underwent a known major overhaul as a merge, the transition from Proof of Work (PoW) networks to Proof of Stake (PoS). While these upgrades are intended to make the platform faster and more reliable, the new staking feature is expected to increase government scrutiny, especially within the United States, where the SEC views Ethereum as financial security. So the recent price spike may have been driven by expectations of upcoming regulation.
price action: At the time of writing, ethereum was trading at $12,544, up 2.7%. etc It was trading at $19 in the last 24 hours According to Benzinga Pro.
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