Ethereum Classic (ETC) is up one percent in the last 24 hours as I type this. Even though it is still a long way from catching up with ETH, chances are it may appreciate in months to come and close the wide gap. This analysis automatically marks this coin under the undervaluation tier meaning ETC is yet to reach full capacity. Everything shall spring back to life if we see prices crossing the $16 mark assuming the recent hard fork drew user demand.
From the News
It may be so easy to dismiss Ethereum classic but the thing his, their believers still hold on to the original objective of the coin. That of complete transparency and immutability even in the wake of DAO smart contract exploitation that saw a couple million dollars siphoned off from their coffers. All in all, ETC remains relevant for some and with a new web wallet, Emerald; we can conclude that this coin is tempered and ready to roll on. Even Charles Hoskinson of Cardano laid emphasis on this.
We did it! 99% of the mining hashrate upgraded successfully.
Blocktimes getting faster; down from 22 seconds to 14 seconds.
Hashrate going up 5 TH/s -> 8 TH/s; making the network more secure. https://t.co/vYuyzgVQ10
— ETC Cooperative (@ETCCooperative) May 30, 2018
After all, why would you not believe in them? ETC is rebuilding after that mass exodus to Vitalik’s Ethereum and to get developers can be arduous. Besides, there have been comparisons between Ethereum and Ethereum classic that simply puts the latter miles ahead. Apart from the smart contract ability and DApps, ETC is superior on their approach on PoW and PoS, technology application and with ETC’s Calisto side chains, ETC whizzes past ETH on scalability. Let’s not forget about their governance structure and how they reach consensus.
ETC proponents still stick to proof of work consensus and they do opine that this is the best system of securing the network. Of course we may argue that PoW is resource intensive but the benefits are that there is better decentralization. For consensus, one has to really commit to the network and show their individual contribution. Therefore, in the spirit of PoW, they did a hard fork in a bid to solve the Difficulty Time Bomb issue. This time, the objective of this fork-in which most nodes have upgraded to-was to decrease block creation time from 26 seconds to 14 seconds within the Ethereum legacy network at block 5, 900,000.
Ethereum Classic (ETC) Price Technical Analysis
From the weekly chart we can easily identify a $12 trading range whose lower limit anchors at $13 and upper limit-and ultimately our mid range buy target-at $25. Technically, these limits should be our support and resistance levels and swing trading range. When we take a look at how price action is panning out then most likely we can have series of higher highs in the coming weeks especially if this week ends up bullish or a bullish pin bar. Like technical formations in other coins, we can easily conclude a long covering in May if we relate trading volumes relative to April and the speed of retracement. That’s why this weekend’s trading activities shall define ETC in June and even July.
There are two candlesticks that are important in our analysis. They did print on May 23-bearish with strong volume spikes and May 29 bullish-a double bar bullish reversal rejecting $13 with similar volume surges. We do need prices to break below or above the recent consolidation.
This shall either confirm a bullish recovery in line with May 29 bullish reversal or bear trend continuation set by May 23 candlestick. It is likely that May 23 was a climax confirming a temporary pause of bear run. Therefore, if prices are to recovery and sync with the general recovery in crypto markets, all we need is a push above $16.
I’m bullish on ETC and so, any close above that would mean buying on dips with targets at $25 or May 7 highs.