EthereumClassic

Technical Analysis of Ethereum Classic

The cryptocurrency market has weakened around 3-4% in the last 24 hours and the price of Ethereum Classic is also pressured by this situation. There is a correlation between the price movements of Bitcoin and other cryptocurrencies but the positive thing for the cryptocurrency market is that the price of Bitcoin has stabilized above $7 000. Starting life as Ethereum, Ethereum Classic (and its value token, ETC) is the result of a long debate over how cryptocurrencies should handle disagreements within the community and data hacks. Ethereum Classic is a peer-to-peer computing platform and the main advantage of Ethereum Classic is that this platform is more secure compared to Ethereum’s platform. When we look at the 1-year chart we can see that Ethereum Classic is moving in “downtrend” and as long Ethereum Classic is below $20 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $6 and $8 – If the Ethereum Classic jumps above $10 that would be a “BUY” signal and the open way to $12 or even $16. If the Ethereum Classic jumps above  $20 that could be a strong signal of the trend reversal and the open way to $30. On the other side, if the Ethereum Classic falls below $5 that will be a strong signal “SELL” signal and the next target could be around $4.

Advice: There is a correlation between the price movements of Bitcoin and other cryptocurrencies but as long the price of Bitcoin is above $7 000 there is no fear of “sell off” for other cryptos. According to estimates, ETC is one of the cryptocurrencies which you should definitely not ignore and this cryptocurrency might still be undervalued despite all the problems. As for the technical picture, the Ethereum Classic remains in bearish phase but if the price advances above $10 next targets could be located around $12 and $15. On the other side, if the Ethereum Classic falls below $5 that will be a strong signal “SELL” signal and the next target could be around $4.
 

Technical Analysis of Ethereum Classic

Ethereum Classic was one of the best performers on the cryptocurrency market in the last two months, in less than sixty days the price of Ethereum Classic has advanced from$3.5 to almost $8. Starting life as Ethereum, Ethereum Classic (and its value token, ETC) is the result of a long debate over how cryptocurrencies should handle disagreements within the community and data hacks. In my opinion, this is still very risky cryptocurrency but Ethereum Classic can be a very good investment option and some predictions say that this cryptocurrency could be above $100 in the next several years. When we look at the 1-year chart we can see that Ethereum Classic is moving in “downtrend” and as long Ethereum Classic is below $20 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $6 and $8 – If the Ethereum Classic jumps above $10 that would be a “BUY” signal and the open way to $12 or even $16. If the Ethereum Classic jumps above  $20 that could be a strong signal of the trend reversal and the open way to $30. On the other side, if the Ethereum Classic falls below $5 that will be a strong signal “SELL” signal and the next target could be around $4.

Advice: The last several weeks have been very positive for the cryptocurrency market and the price of Ethereum Classic currently stands around $6.25. Ethereum Classic is a peer-to-peer computing platform and the main advantage of Ethereum Classic is that this platform is more secure compared to Ethereum’s platform. According to estimates, ETC is one of the cryptocurrencies which you should definitely not ignore and this cryptocurrency might still be undervalued despite all the problems. As for the technical picture, the Ethereum Classic remains in bearish phase but if the price advances above $10 next targets could be located around $12 and $15. On the other side, if the Ethereum Classic falls below $5 that will be a strong signal “SELL” signal and the next target could be around $4.

Technical Analysis of Ethereum Classic

Ethereum Classic is a peer-to-peer computing platform and the main advantage of Ethereum Classic is that this platform is more secure compared to Ethereum’s platform. The price of Ethereum Classic has been in the “bearish” phase since January 2018 but we can not say for sure that the lowest price in December 2018 was the end of this phase. Starting life as Ethereum, Ethereum Classic (and its value token, ETC) is the result of a long debate over how cryptocurrencies should handle disagreements within the community and data hacks. In my opinion, this is still very risky cryptocurrency but Ethereum Classic can be a very good investment option and some predictions say that this cryptocurrency could be above $100 in the next several years. When we look at the 1-year chart we can see that Ethereum Classic is moving in “downtrend” and as long Ethereum Classic is below $20 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $4 and $8 – If the Ethereum Classic jumps above $10 that would be a “BUY” signal and the open way to $12 or even $16. If the Ethereum Classic jumps above  $20 that could be a strong signal of the trend reversal and the open way to $30. On the other side, if the Ethereum Classic falls below $4 that will be a strong signal “SELL” signal and the next target could be around $3.

Advice: According to estimates, ETC is one of the cryptocurrencies which you should definitely not ignore and this cryptocurrency might still be undervalued despite all the problems. As for the technical picture, the Ethereum Classic remains in bearish phase but if the price advances above $10 next targets could be located around $12 and $15. On the other side, if the Ethereum Classic falls below $4 that will be a strong signal “SELL” signal and the next target could be around $3.5.

WILL 51% ATTACK ON ETHEREUM CLASSIC AFFECT PRICE?

On the 5th of January 2019, the 18th largest cryptocurrency by market capitalization, Etherum Classic (ETC) which was forked out of Etherum got hacked. The hacking was not the normal hacking that we are used to in the crypto sphere, rather it is the rare 51% attack. Apparently, it took over 24 hours for Coinbase to detect this hacking, and as a result, Coinbase alongside other cryptocurrency exchange platforms froze Etherum Classic (ETC) from trading. Investors have been asking questions, and the cyber space in general has been agog with questions as to if this attack will affect the prices of Etherum Classic (ETC). Or in a more general term, people have been asking if 51% attack can affect the prices of cryptocurrencies.

WHAT IS A 51% ATTACK?

It is an attack on the mining pool of a cryptocurrency project, in which a group of miners or a single miner takes control of the network by controlling more than 50% in price value of the network. Simply put, when a miner or a group of miners gain over 50% control of a cryptocurrency network, it is referred to as a 51% attack. A control of this magnitude gives the controller the ability to block transactions, modify transactions and they can even make false double transactions. In the case of the 51% attack on Etherum Classic (ETC), Coinbase claimed that it gave a single person the power to control about 60% of the mining power of the cryptocurrency, leading to longer blockchain and consequently, availing the person the power to do double transactions. Most 51% attacks are most likely detected by cryptocurrency exchanges, more reason why Etherum couldn’t detect the attack, hence the reason why it lasted for two days.

The Aftermath of Ethereum Classic

No doubt, the attack came as a shock to a lot of people, but then most of these people had their surprise hinged on the wrong reasons. Major holders of the cryptocurrency were on their toes, especially when Coinbase and other cryptocurrency exchange platform took it down for a while. However, there is a probability that the concerns that people had concerning the price value of the cryptocurrency have died down. It has been almost two weeks since the attack, yet there is no sign of a decline in value of Etherum Classic (ETC) on the cryptocurrency exchange market. The coin has continued to maintain the performance it had prior to the attack, trading at $4.56 USD currently, although it took a nose dive of 0.5 USD when Coinbase announced the attack. Also, when Vertcoin and Bitcoin Gold experienced 51% attack, the hack didn’t have much effect on their prices. They are both doing well in the cryptocurrency market with good future prospects.
It is not the same story for the exchange platform, as 51% attack takes most of its toll on these platforms. Coinbase leads other cryptocurrency exchange platforms in damages, with estimated $1.1 Million losses as a result of the double transactions. However, this does not in any way mean that a 51% attack will not affect the price of a cryptocurrency. Once investors lose confidence in the security details of a network, the price will drop. But this is not the case with ETC as the development team of the company sprang to action immediately after the attack, assuring coin holders that such an attack will not happen again.

Take home point

The take home lesson from the 51% attack on Etherum Classic (ETC) in my opinion is that in any 51% attack on a cryptocurrency, the coin holder or trader actually walks home unscathed. The exchanges on the other hand take the damage. But on the long run, in a situation when coin holders go into panic and sell off their holdings, or there is a consistent 51% attack, it will not just affect the coin holder but it will kill the cryptocurrency itself. It can also lead to a hard fork, resulting in the network chain splitting into two. For instance, we know that Etherum Classic (ETC) was forked out of Etherum (ETH). So a subsequent attack might lead to Etherum Classic splitting into two.

Technical Analysis of Ethereum Classic

Starting life as Ethereum, Ethereum Classic (and its value token, ETC) is the result of a long debate over how cryptocurrencies should handle disagreements within the community and data hacks. In my opinion, this is still very risky cryptocurrency but Ethereum Classic can be a very good investment option and some predictions say that this cryptocurrency could be above $100 in the next several years. When we look at the 1-year chart we can see that Ethereum Classic is moving in “downtrend”. The January 2019 has been a very negative month for the cryptocurrency market and all major cryptocurrencies are still under the pressure. As long Ethereum Classic is below $20 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $3 and $8 – If the Ethereum Classic jumps above $10 that would be a “BUY” signal and the open way to $12 or even $16. If the Ethereum Classic jumps above  $20 that could be a strong signal of the trend reversal and the open way to $30. On the other side, if the Ethereum Classic falls below $3 that will be a strong signal “SELL” signal and the next target could be around $2.5.

Advice: Ethereum Classic is a peer-to-peer computing platform and the main advantage of Ethereum Classic is that this platform is more secure compared to Ethereum’s platform. According to estimates, ETC is one of the cryptocurrencies which you should definitely not ignore and this cryptocurrency might still be undervalued despite all the problems. As for the technical picture, the Ethereum Classic remains in bearish phase but if the price advances above $10 next targets could be located around $12 and $15. On the other side, if the Ethereum Classic falls below $3 that will be a strong signal “SELL” signal and the next target could be around $2.5.
 
 
 

Technical Analysis of Ethereum Classic

Starting life as Ethereum, Ethereum Classic (and its value token, ETC) is the result of a long debate over how cryptocurrencies should handle disagreements within the community and data hacks. Ethereum Classic is a peer-to-peer computing platform and the main advantage of Ethereum Classic is that this platform is more secure compared to Ethereum’s platform. According to estimates, ETC is one of the cryptocurrencies which you should definitely not ignore and this cryptocurrency might still be undervalued despite all the problems. When we look at the 1-year chart we can see that Ethereum Classic is moving in “downtrend”. As long Ethereum Classic is below $20 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $4 and $8 – If the Ethereum Classic jumps above $10 that would be a “BUY” signal and the open way to $12 or even $16. If the Ethereum Classic jumps above  $20 that could be a strong signal of the trend reversal and the open way to $30. On the other side, if the Ethereum Classic falls below $4 that will be a strong signal “SELL” signal and the next target could be around $3.

Advice: In my opinion, this is still very risky cryptocurrency but Ethereum Classic can be a very good investment option and some predictions say that this cryptocurrency could be above $100 in the next several years. As for the technical picture, the Ethereum Classic remains in bearish phase but if the price advances above $10 next targets could be located around $12 and $15. On the other side, if the Ethereum Classic falls below $4 that will be a strong signal “SELL” signal and the next target could be around $3.
 

Trading Strategies for Ethereum Classic(Nov.13th)

Ethereum Classic is an open source, decentralized, blockchain-based distributed cryptocurrency platform that runs smart contracts. Ethereum Classic emerged as a split version of Ethereum. It is the 17th cryptocurrency in the World with a total market cap of about $2.0 billion. Its ticker symbol is ETC.
In our trading strategy, we outline the Fakeout-Shakeout pattern which sets up in any market at any time frames.

Steps to consider when trading Ethereum Classic (buy side):

Identify a clear trading range zone followed by a breakout below the support level

The idea behind the Fakeout-Shakeout reversal pattern is that we are looking for an area of consolidation or range trading followed by a false breakout which is brought about by institutional money. A trading range is defined by price moving back and forth between clear support and resistance levels. A valid Fakeout only needs enough bearish momentum so that we can break below the trading range.

Identify the starting point of the Fakeout movement

A false breakout is confirmed when the market starts recovering and breaking above the starting point of the sell-off. Mark on the chart the bearish candle that started the sell-off. Look for the most prominent bearish candle within the downward movement. The stronger and faster the recovery happens, the stronger the reversal pattern becomes.

Place a limit buy order above the candle’s high identified as step 2

The Fakeout movement is designed to fool trader into believing the market will go down when the real intention is to move the market up.

Place your protective stop loss below the “Fakeout low.”

The initial stop loss is placed at the swing low developed during the Fakeout-Shakeout phase.

Define a take profit level

Take profits when the bullish momentum fades away. The bullish momentum fades away when the price either starts to consolidate again or when big bold bearish candle starts to develop on the chart. Alternatively, you can monitor new swing low points as they are formed and trail your protective stop loss below these swing points.

The same rules apply during a sell trade of the Ethereum Classic.

References

  1. https://tradingstrategyguides.com/ethereum-classic-cryptocurrency-strategy/
  2. https://bitcoinexchangeguide.com/ethereum-classic-etc-long-term-price-forecast/
  3. https://bitcoinexchangeguide.com/ethereum-classic-etc-comes-to-coinbase-pro-trading-platform-whats-next/
  4. http://www.bestbitcoinexchange.net/ethereum-classic-etc/