The positivism about the upcoming hard fork has led the ETC network to accumulate profits above 30%. If the cryptocurrency crosses the resistance at USD 60.71, the bulls will recover the short-term control.

The price of Ethereum Classic (ETC) recently accumulated a profit above 30%. The generalized bullish intentions on the market and the upcoming hard fork of the network have caused that positive jump.

ETC is trading at around USD 55.01 and has accumulated a loss of 1.36% in the last 24 hours. However, it has remained 38.91% positive this week.

This cryptocurrency is one of the most prominent in the ecosystem due to its relevant percentages of profit. Undoubtedly, the positivism about the hard fork has led to that bullish jump.

The implementation of Ethereum improvement proposals (EIP) should occur together with the latest hard fork. Earlier this year, it was possible to see them for the first time in the Berlin update of the Ethereum network.

This update seeks to improve the security of the network, as well as reduce gas costs. By storing the keys and addresses in one place, users can access them through a single transaction.

Technical Analysis of the Price of Ethereum Classic

The ETC daily graph shows a big bullish jump, a break of the immediate resistance, and the beginning of a short-term bullish transition.

There is still a dominant bearish direction as the price of Ethereum Classic still has to break resistance at USD 60.71. By overcoming this challenge, the bulls could recover short-term control.

For its part, the weekly graph of the price of Ethereum Classic indicates that the recent fall failed to close below the previous low. That is a sign that the bulls are exhausted and that the price could reach the retracement bottom.

The resistance that the cryptocurrency must break to confirm a bullish resumption is USD 66,12. The current bullish volume indicates that this is the most likely scenario for the market of the cryptocurrency.

If ETC loses the support at USD 39.79, it would be confirming a bearish transition in the medium term.

Current Situation of Ethereum’s Cryptocurrency Ether

Although the price of Ether (ETH) maintains a short-term bearish trend, it was already beginning to break the immediate resistance close to USD 1,989.

The cryptocurrency now has to face the upcoming and most short-term resistance surrounding USD 2,278. If its price breaks it, it would mean the beginning of a bullish transition, which would lead to increasingly high lows and highs.

The price ceilings of USD 2,634 and USD 2,884 could hinder profits. Ether needs to break that last resistance to resume the medium- or long-term trend.

The recovery of the second cryptocurrency on the market began with support close to USD 1,733. The price of ETH rapidly slowed down at that level in May, showing great exhaustion and the impossibility to mark new lows.

If the price of Ether loses that support, it will lead to sales of up to USD 1.581. The lowest level following it stands at USD 1.419.

The lowest low that the price of ETH has reached is USD 2,711, but its medium-term trend has not suffered any falls. There is still a clear bullish trend that does not allow losses to extend too much.

By Alexander Salazar

The ban on mining in Chinese key provinces is the main reason for the fall of the Bitcoin hash rate. The government of the Asian country has banned mining since the use of fossil fuel goes against its interests.

The hash rate of Bitcoin continues to fall considerably, going from being one of its most stable indexes to being the most volatile. Massive mining equipment disconnections in China have led to this decline in the processing power of the cryptocurrency.

The drop in the hash rate reduces the speed of transactions, increases vulnerability to attacks, and causes the price to fall.

However, mining difficulty would drop to levels below 20% in a few hours. In other words, active miners will receive better rewards as they can quickly solve block processing math problems.

Relationship between the Fall of the Bitcoin Hash Rate and the Measures of China

The measures of China against mining are the main reason for the fall of the Bitcoin hash rate. It is important to remember that the authorities of that country banned cryptocurrency mining in several key provinces.

Regions such as Xinjiang, Inner Mongolia, Sichuan and Yunnan concentrated around 60% of the world’s farms. For that reason, the disconnection of the machines operating there is causing the Bitcoin hash rate to plummet.

The current decline in processing power is not a natural process like those that occur during seasonal changes. On the contrary, this decrease in the hash rate is problematic as reconnections remain pending.

The Communist Party’s Crusade against Cryptocurrency Mining

Bitcoin mining has received attacks from several directions in recent months. The alleged damage to the environment provokes criticism from influential figures such as the CEO of Tesla, Elon Musk.

Regarding China, its economy does not work in the same way as in the rest of the world. The Communist Party is in charge of holding the reins of the nation. For that reason, the economy works according to the communist view of development.

It is a strictly planned economy as the nation has clear long-term goals. For example, it seeks to become a CO2-neutral country by 2060.

Xinjiang was one of the regions that concentrated the highest percentage of Bitcoin hash rates. Fossil fuels such as coal and natural gas are the predominant energy source, which goes against the interests of Beijing.

Consequences of the fall of the Hash Rate of the Bitcoin Network

Nobody can accurately predict the effects of the dramatic fall in the Bitcoin hash rate. The processing power of the pioneering cryptocurrency currently stands at 92.79 EH/s.

This figure shows a recovery when comparing it to its rate after it fell to 58 EH/s. However, it is possible to see a drop above 50% when comparing it to the levels of May.

The blockchain network would be more vulnerable to possible attacks, but it would be a very low possibility. The fall of the Bitcoin hash rate would also affect the market price of the cryptocurrency.

Bitcoin is a very volatile asset, and its price fluctuation reacts quickly to positive or negative news. Although the drop in its hash rate can be positive, it is usually the opposite. For that reason, it can cause the price of Bitcoin to drop and disconnected miners to liquidate some Bitcoin to move abroad.

By Alexander Salazar

The problems with the energy supply in Iran have led Bitcoin mining farms to use fossil fuels, causing health problems to many people. Although the authorities are granting licenses to some Bitcoin mining farms, they have closed hundreds of establishments.

The Authorities of Iran recently permitted around 30 Bitcoin mining farms to operate in the country. That seems to be softening the harsh measures that the government had taken against the mining business. Mining companies in different parts of the country received their licenses.

Iran is currently experiencing problems with the supply of energy, which has led Bitcoin mining farms to use fossil fuels. The resulting pollution has worsened the health problems of many people in the major cities of the country.

In addition to that, this lack of energy forced the Iranian authorities to establish electricity rationing cuts. The economic sanctions of the United States have contributed to the crisis that the country is undergoing. They have affected all industrial and commercial levels of Iran, wreaking havoc among the population.

These Are the Reasons for the New Licenses of Bitcoin Mining Farms

The Iranian authorities ordered the closure of Bitcoin mining farms for four months, aiming to ration energy. The now-former president of the country, Hassan Rouhani, said that they extended the ban on the mining activity until September 22^nd.

The former head of State also alerted the authorities to take action against illegal cryptocurrency mining farms. He highlighted that 85% of the cryptocurrency mining activity in the country occurs clandestinely.

During Rouhani’s administration, the authorities closed hundreds of illicit mining centers and notified those legalized of the new temporary law. Although they did not say whether they would extend the four-month order to ban mining, it seems that they have relaxed it.

This authorization appeared a few days after the authorities seized 7,000 cryptocurrency mining machines in Tehran. One of the Bitcoin mining farms that have received a license will operate in the capital of the Islamic country itself.

The Authorities Still Has the Bitcoin Mining Business in Its Sights

The authorities of Iran have relaxed the measures, granting licenses to some Bitcoin mining farms. However, this does not seem to be the rule since they have closed hundreds of establishments. That indicates that the mining business is still in the sights of governments in several parts of the world.

The most relevant case is China, where the central authorities announced the almost immediate ban on cryptocurrency mining. The massive disconnection of equipment in the country led to the drop in the hash rate of the Bitcoin network.

Despite this hostility against the activity, some countries show their support for cryptocurrencies. Among the most enthusiastic is the United States, where many local administrations have offered to welcome Chinese migrant miners. Two of the most prominent states of the country are Texas and Wyoming.

Francis Suárez, the Mayor of Miami, said that migrant Chinese Bitcoin miners could operate in his city. He stated that Miami had an infrastructure that generates infinite and cheap energy, convenient for the activity. Suarez is one of the most enthusiastic about the adoption of crypto assets in the economic system.

By Willmen Blanco