The ETH fork known as Ethereum Classic has been on a steady decline in recent weeks, in line with general market sentiment, but the future continues to look promising for the price of this cryptocurrency.
At the time of writing, ETC is trading at $ 55.10, accumulating a 0.40% loss in the last 24 hours. With a market capitalization of $ 6.527 million, today this coin is the 22nd largest in the crypto ecosystem.
This coin was born as a way to solve a difficult situation that the Ethereum community went through. I’m talking about the theft of several million ETH in 2016, which were protected by The DAO project.
On the Ethereum Classic network, the stolen coins were left as is. Meanwhile on the other side, on the main chain (ETH) the ethers were returned to their owners.
Even with the differences of both networks, they point to the same purpose, and that is to become a large decentralized blockchain, with the ability to execute smart contracts without any possibility of third-party interference.
How is ETC currently doing?
ETC has been steadily gaining traction in the ecosystem, maintaining the foundations of its progenitor, but with an active development community that makes changes and improvements that try to face its direct competition.
The most recent of these improvement proposals is the algorithm change. The update seeks to increase the security of the network, which has been exposed to a high risk of attack of 51%.
The proposal is called ECIP 1049, and recommends switching to SHA 3 (Secure Hash Algorithm 3) to greatly reduce the possibility of bad actors performing an attack on the network.
Alex Tsankov, who leads the development team, stated that the SHA 3 code is ready and is working on the testnet. Right now it is in the stage of receiving community consensus.
He added that no later than next year the update will be online, and it could potentially make this blockchain bigger even than BTC or ETH.
Hash rate tells us about the good health of the ETC network
One of the best ways to quickly check the health of a proof-of-work validated network is by looking at its hash rate. The Ethereum Classic network recently experienced a strong hash rate rebound, doubling since April this year.
This ETH fork has been growing steadily, but is still a long way from catching up with its parent. There are more than 745,000 active Ethereum addresses, while on the Classic network there are just 35,000.
However, the continuous progress of the project promises to continue taking the figures higher, which would go hand in hand with the general upward cycle of the market, and proposals for improvements such as the one discussed in previous paragraphs.
Ethereum Classic price technical analysis
Reviewing the ETC price daily chart, we can notice a clear correction after a big bullish momentum.
With all the losses that this cryptocurrency has accumulated, even the fall does not seem to be too worrying.
Lately the price has been locked in a small descending triangle, which could be signaling a break before the continuation of the trend.
The great bullish power that ETC has brought over the last few months tells us that soon the bulls may surprise us, and finally resume the previous trend.
In any case, it is a matter of continuing to monitor, because in case of losing the support at $ 51.57, it would open the way to selling up to $ 40.00 probably, postponing the rise or increasing the risk that a deeper correction will develop.
Forecast for the future price of Ethereum Classic
By analyzing the Ethereum Classic weekly chart, a clear medium-term uptrend can be identified that is still in force, which could continue to drive the price higher in the future.
The price appears to have marked a retracement bottom at 88% Fibonacci. However, we have yet to see good strength from the bulls to ensure that the pullback is over and that we will truly remain in an uptrend.
Buyers should defend the support at $ 51.55 if they do not wish to jeopardize the trend. In case it is lost, the land would be cleared up to $ 37.
We are still seeing a dominant bullish force, which could surprise us very soon. Most likely, we will see a future resumption of the trend, and with it a search for new all-time highs. The Fibonacci Tool marks a target of $ 280.
All our publications are informative in nature, so in no case should they be followed as investment advice.