An active development community is making improvements to increase the security of the ETC network given the high risk of attacks. This cryptocurrency has suffered losses but its great bullish power suggests that it will resume the previous trend.
For the past few weeks, Ethereum Classic (ETC) has been declining steadily, in line with general market sentiment. However, the future of the price of this Ethereum (ETH) fork continues to look promising.
This cryptocurrency emerged as a solution to a difficult situation that the Ethereum community was going through. In 2016, there was a theft of several million ETH that The DAO project was guarding.
The stolen coins remained on the Ethereum Classic network while the Ethereum mainnet returned the ethers to their owners.
Despite their differences, both networks seek to become a large decentralized blockchain, capable of executing smart contracts without third-party interference.
The Current Situation of Ethereum Classic
ETC has steadily gained traction in the ecosystem, maintaining the foundations of its parent cryptocurrency. However, an active development community is making changes and improvements to face its direct competition.
A proposal to change the algorithm seeks to increase the security of the network, given the high risk of 51% attacks. The proposal, called ECIP 1049, recommends switching to SHA 3 (Secure Hash Algorithm 3) to reduce the possibility of attacks against the network.
The development team’s leader Alex Tsankov 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.
The Hash Rate Indicates the Good Health of the ETC Network
One of the best ways to assess the health of a proof-of-work (PoW) validated network is its hash rate. The Ethereum Classic network recently had a strong rebound in its hash rate, which has doubled since April.
Although ETC has been growing steadily, it is still a long way from reaching its parent cryptocurrency. The Ethereum network has more than 745,000 active addresses while the Ethereum Classic network has just 35,000.
However, the project is making steady progress promising to drive the numbers higher. That would go hand in hand with the general bullish cycle of the market and new improvement proposals.
Ethereum Classic Price Technical Analysis
Ethreum Classic’s daily chart indicates a clear correction after a big bullish momentum.
Despite the losses that this cryptocurrency has suffered, the fall does not seem too worrying yet. The strong bullish power of ETC in recent months suggests that the bulls could surprise by resuming the previous trend.
It is a matter of time, as there may be sales up to USD 40.00, in case of losing the USD 51.57 support. That would delay the rise or would increase the risk of a deeper correction.
Ethereum Classic Price Forecast
Ethereum Classic’s weekly chart allows identifying a clear medium-term bullish trend that is still in force. That could continue to drive the price higher in the future.
In order not to risk the bullish trend, buyers should defend the USD 51.55 support. If they lose it, the ground would be clear to USD 37.
There is still a dominant bullish strength, which could surprise soon. Most likely, the trend will resume, looking for new all-time highs. According to the Fibonacci tool, the target is USD 280.
By Alexander Salazar
