Ethereum Classic is the original sect that follows the same regulations and protocols that were introduced in 2015. While Ethereum has posted significant gains, the ETC has been a lackluster growth in dollar gains compared to its split currency, Ethereum. ETC maintains the original history of the Ethereum network and has undergone some changes.
Ethereum Classic is an open-source decentralized blockchain network that provides an ecosystem for leveraging smart contracts known as scripting functionality. A smart contract is created automatically when both parties have fulfilled their transaction conditions. This crypto asset facilitates the execution of smart contracts by offering the benefit of decentralized governance.
Why the original blockchain was split into Ethereum Classic (ETC) and Ethereum (ETH).
Ethereum was first released on July 30, 2015. Ethereum Classic was derived as a result of the infamous network vulnerability hack. A hacker gained access to over $50 million worth of ether crowdsourced by DAO to fund the organization. DAO was known as a decentralized autonomous organization that functioned as an investor-led venture capital firm. After the incident, DAO was quickly delisted and ceased functioning as a venture firm in 2016.
As a result, the Ethereum blockchain split into two sects, with Ethereum Classic (ETC) being the original and Ethereum (ETH) being the newer version of the blockchain that removed the DAO theft story from the blockchain story.
Eventually, the Ethereum community voted to perform a hard fork to reverse the theft. At the same time, few people resisted, arguing that changing things would go against the idea of a blockchain-powered philosophy. Ethereum Classic continued as the original idea, while ETH or Ethereum has embarked on a new path.
Ethereum classic, on the other hand, was frequently the victim of 51% of attacks. A 51% attack is a situation where others gain control of 51% of the network’s processing power. It can seriously affect the growth and plans of this cult. The only good news is that the last 51% attack on the ETC network happened in 2020. However, the Thanos upgrade released on November 28, 2020 turned the tables and effectively prevented another 51% attack.
Ethereum technical analysis
ETC has risen by 1100% since the beginning 2021 and touched a high of $175 on May 6th. It is currently trading near the 30-day moving average and appears to be in a consolidation phase.
According to moving average analysis, this cryptocurrency is trading well above its 100-day moving average. Despite profit booking, ETC defended the immediate support levels of its 50-day moving average with resistance around the 30-day moving average.
It is unusual to see such strong support in relation to the moving average. We found the previous high of $175 to be unsustainable given the massive gap between the moving average lines. Currently, ETC seems to be consolidating before breaking either of the 30 or 50 DMA to paint a clear picture of the move going forward.
As long as this cryptocurrency is trading above its 100-day moving average, it would be safe to adopt a green signal in the coin. However, buying the coin for holding purposes could be risky as it trades at twice the value of its 100 DMA. Until the 100 DMA moves close to the actual traded value or vice versa, maintain a short hold and play between the immediate support and resistance.
Heiken Ashi is among the best chart patterns that help to understand the dynamics of stock prices without a reference point. Here in the ETC counter, we are seeing a strong consolidation around the 30-day moving average. It brings our short and long term view of this cryptocurrency to the same level. However, the range of consolidation here is quite small, and if it needs support from the immediate levels mentioned, Ethereum classic may attempt to exceed $80 again.
The RSI indicator also shows that the immediate short-term support is in play as the indicator has moved from oversold zones to neutral territory. According to the latest pattern, it may reach the oversold zones before ETC sees some consolidation or a breakout towards the $100 milestone.
Considering the impact of the Thanos upgrade on the 51% attack shift, we can expect a significant reversal in the underlying price of Ethereum Classic if the broader crypto market trading organizations maintain the potential regulatory impact. Click here for more information on ETC prediction from crypto experts.
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