Ethereum Classic is the old version of ETH before the DAO attack in 2016. The incident has wiped away more than 3 million ETH. After that, the founder Vitalik Buterin comes with a hard fork version which is known as Ethereum. Although the decision was controversial because ETC is used to run on a decentralized version, the decision contradicts it.
Now in 2022, Ethereum Classic has got more exposure after Ethereum’s Merge upgrade because miners have nowhere to go with their equipment. They are starting their new journey in Ethereum Classic with their old equipment because it is a billion-dollar industry worldwide.
However, experts are concerned about Ethereum Classic’s safety because of its low hash rate, and there is no plan to migrate it from the Proof of Work consensus. On the other hand, it has a history of a ‘51% attack’, so many investors would not rely on ETC for the long term. Ethereum Classic has a smaller market cap, so it is easier for malicious actors to capture 51% of the blockchain and wipe away ETC again.
On the other hand, if the developers improve the security of this decentralized blockchain protocol, then it will drive the price up in the next few years. Based on the ETC prediction, it is not suitable for long-term holding.
At the time of writing, ETC was trading around $37.41. We can find a bullish trend with the recent support of $36. Moreover, there is a strong resistance of around $48, but you can invest for a short trade in Ethereum Classic, and it will give a decent return within a few weeks.
Candlesticks are forming in the upper range of the Bollinger Bands, and other technical indicators are also bullish at this time. However, there is a probability of consolidation between $41 and $36. We think ETC will cross the initial resistance of $41 in the next few days.
In the long-term weekly chart, Ethereum Classic has formed a higher low of around $30 after taking support at around $15. Though $50 is strong resistance, we think it will cross the resistance in the long term. However, it will also depend on the market sentiment.
Overall, candlesticks are forming in the upper range with bullish MACD and RSI, which suggests bullishness for the long term. However, you should not invest for the long term until ETC shows a final signal of bullish reversal by forming a higher high over $50.