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- 1 The Ethereum Classic is known for its minimum transaction costs and ability to support decentralized apps.
- 2 The ETC price has fallen rapidly after breaking several support levels.
Ethereum Classic (ETC) is a cryptocurrency that enables developers to create smart contracts and decentralized applications. It is known for its low transaction costs, full decentralization, and ability to support various dApps. The ETC price is currently trading in a consolidation zone.
How Ethereum Classic was born?
The history of Ethereum Classic is closely linked to Ethereum until 2016. After a hack, some developers favored a hard fork to minimize the damage, while others opposed changing the original blockchain and remained loyal to the existing platform, which they subsequently named Ethereum Classic.
The Decentralized Autonomous Organization (DAO), which the original Ethereum used, is associated with the original incident. The purpose of this organization was to ensure that the network and its decision-making process remained decentralized. However, it was breached by a hacker who stole approximately USD 50 million worth of ether (approximately 3.6 million ether) as the cryptocurrency was required to use the Ethereum platform and its products.
Most of the original Ethereum developers opted for the hard fork, while Ethereum Classic supporters claim that the platform essentially provides the same functionality for the development of smart contracts and dApps. Smart contracts are executed on the platform’s Sputnik Virtual Machine, while dApps are created with the help of the Emerald Software Developer Kit.
The network still employs the Proof-of-Work protocol and has no plans to change it, unlike Ethereum which intends to adopt the Proof-of-Stake consensus algorithm. Nodes that process transactions related to smart contracts are paid in ETC.
Ethereum Classic competes directly with platforms such as NEO, Qtum, and Lisk, which are also focused on smart contracts and dApps. Geth software runs the nodes on the Ethereum Classic network and handles accounts, transactions, and mining. ETC’s shorter block times lead to low transaction fees.
Ethereum Classic and Mining
The topic of Ethereum Classic mining attracts the attention of cryptocurrency enthusiasts. After the Thanos hard fork of 11,700,000 blocks, Ethereum Classic’s mining algorithm was changed from Ethash to Etchash, making it impossible for Ethash ASICs and Ethash hash power leased from NiceHash to process the new algorithm and mine ETC.
Furthermore, the size of the ETC network’s DAG file has been reduced since October, and as a result, 3GB and 4GB GPUs cannot mine ETC. GPU mining machines can efficiently mine Ethereum Classic, but CPU cards cannot. GMiner or NBMiner can be used to mine Ethereum Classic.
To receive and track your mining earnings, you’ll need an Ethereum Classic wallet address. The f2pool mining pool distributes mining revenues daily to every user who reaches the 0.1 ETH payoff threshold. f2pool’s pay plan is 3% PPS. Mining on Ethereum Classic is not going to stop. ETC, like Bitcoin and Litecoin, uses the Proof-of-Work consensus, and thus mining activities will continue.
ETC Token Technical Analysis
The ETC coin has made a bullish move forward on the day of approval of the spot Bitcoin ETF. However, the bullish investors exited and the coin is returning to the levels of December. The current support however is at $22.5 and $18.41 while the Immediate resistance levels are at $26.6 and $32.41. The RSI is on the neutral level of 48 while the 50 and 150-day EMA are at $22.7 and $20.09 respectively. The target as per the current analysis is neutral.
Conclusion
In 2016, Ethereum faced a hack that caused a split among developers. Some opted for a hard fork while others stayed loyal to the original blockchain and named it Ethereum Classic. Unlike Ethereum, Ethereum Classic still uses the Proof-of-Work protocol and pays nodes for processing smart contract transactions with ETC coins. Recently, ETC experienced a bullish trend but it is now returning to December levels.
Technical Levels
- Support Levels: $22.54 and $18.41
- Resistance Levels: $26.62 and $32.41
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
