BCGAME - Free 5BTC Daily Bonus!The price of ethereum classic (ETC) rose rapidly on May 6th, reaching an all-time high of $176 from the $70 level on May 5th. On the same day, the ether (ETH) also set a record, reaching US$ 3,5 thousand per currency. However, as ETH hit new highs, peaking at $4.362 on May 12, ETC began to lose value rapidly. The currency ended June 16 trading at $55,27.
So what is the difference between ETH running on blockchain Ethereum and ETC? And what has driven the value of Ethereum Classic so far in 2021?
This article analyzes the development of the ETC cryptocurrency and its long-term price predictions.
In this article, we will discuss:
The original Ethereum blockchain diverges after splitting
The blockchain Ethereum was released in 2015 after two years of development by co-founders Vitalik Buterin and Gavin Wood, along with Charles Hoskinson and Anthony Di Iorio.
Ethereum Classic was created from a hard fork on the Ethereum blockchain in July 2016, when blockchain participants disagreed on how to respond to a decentralized autonomous organization (DAO) hack that resulted in the theft of 3,6 million ether coins .
Ethereum Classic is a continuation of the original blockchain as it did not reverse the blockchain to cancel the impact of the hack. Participants maintained the principle that 'code is law', while what is now the blockchain Ethereum was created by the division. Mining companies and exchanges supported both blockchains, allowing the legacy Ethereum Classic network to continue with ETC as its native currency.
The two block chains diverged as the Ethereum block chain moves toward a series of updates to create Ethereum 2.0, including a change to the proof of bet (PoS) mining algorithm from the proof of work algorithm ( PoW) used by Bitcoin.
There are no plans to convert from Ethereum Classic to PoS. There is no official development team for Ethereum Classic, but several development groups are working on updates to open source.
Recent attacks have affected the ecosystem, leading blockchain infrastructure research and engineering firm IOHK, founded by Charles Hoskinson, to launch the Mantis project to implement updates and support the community.
Ethereum Classic operates as an intelligent contract network and can host decentralized applications (DApps). As the price of ETC increases, the rewards miners receive for checking blocks increase, encouraging more miners to join the network and increase network security.
As activity on the Ethereum Classic blockchain dropped, it became more vulnerable to attack. In January 2019, there was a double $1 million ETC spent on exchanging Coinbase cryptocurrencies in a 51% attack, which can only occur if an entity or collective owns at least 51% of the network. Coinbase and several other exchanges halted ETC transactions and the price dropped in response.
ETC price rises to a new high in 2021
The price of ETC was $2,08 when the blockchain split in July 2016. The price dropped to $0,75 in November 2016, when it hit rock bottom. It then had an uptrend, accelerating to reach $46 in December 2017. The subsequent drop pushed the price back to $3,76 in December 2018.
After the 51% attack in January 2019, the ETC rose steadily to reach $9,33 in June, then dropped to $3,54 by the end of the year. The price rose to $12,34 in February 2020, its highest level since 2018. A broad sell-off in cryptocurrencies dropped the price to $4,51 in March 2020, and ETC was traded in a range between $4 and $6 for the rest of the year.
The latest crypto rally and renewed development activity on the Ethereum Classic blockchain has dramatically increased the ETC price since early 2021. Emergency updates by the Core-Geth protocol provider and the relaunch of the Mantis client have increased confidence in the stability of blockchain. On April 26, cryptocurrency payment gateway NOWPayments added ETC and developers started releasing non-fungible tokens (NFTs) on Ethereum Classic.
The ETC price rose to $16,90 in February and traded between $9,94 and $14 through the end of March. The price soared to $46,68 on April 17th, fell to $29,73 on April 25th and reached a high of $71,93 on May 4th. The rally didn't stop there and on May 6 the cryptocurrency hit a new record of $176.
However, after reaching an all-time high, the ETC lost its bullish momentum and began to trend down, dropping to $45,16 on May 23rd. After hitting rock bottom, the currency skyrocketed to $82,42 on May 26th. However, the rally was short-lived, with the ETC falling to $55,27 on June 16th. But even at that price, the currency was still up 873% for the year.
As of this writing, June 17, ETC is trading at $56,85.
What will the next price be? Will it retreat after the sharp rally, or will it continue to rise?
Ethereum's classic price forecast: is the rally sustainable?
A short-term technical analysis indicates a bearish sentiment around the ETC price. The currency's closest short-term technical support level is $54,02, with resistance near $57,29, indicating the potential to rise to $60,55.
For a longer-term perspective, the ETC currency forecast from the forecasting website based on the WalletInvestor algorithm shows the price hovering around the $56 level in July and August, later rising to the end of 2021 at $64,95. He predicts the cryptocurrency will trade at $89,57 in December 2022 and rise to $163,31 by the end of 2025.
Digitalcoin is much more optimistic. He predicts that the ETC price will continue to rise, averaging $87,58 in 2021. His ETC forecast estimates that the price will double from the 2021 average to reach $170,24 in 2025. In the long run, the currency's value is estimated at $253,76 on average in 2028.
The Gov Capital ETC forecast puts the price at $55,12 in December 2021, rising to $70,59 in December 2022 and $145,00 in December 2025.
Long Forecast's forecast for the future price of Ethereum Classic predicts even more volatility ahead. He predicts the price will rise in 2021 to end the year at $105,3, and then decline to $62,8 in November 2022, before reaching $83 in January 2023. to $78,7 at the end of 2023, before dropping to $40,6 in July 2025.
Frequently asked questions
Will the price of ETC increase?
The direction of ethereum price Classic will depend on how the protocol develops, along with further adoption, as well as price direction in cryptocurrency markets.
How much will Ethereum Classic be worth in 2025 and 2030?
Forecasts for the ETC price in 2025 vary, with some analysts indicating that the price will retreat, while others expect it to continue to rise strongly. WalletInvestor predicts that ETC will trade around $160 in December 2025, while Digitalcoin suggests it will average $253.
How can I buy and trade Ethereum Classic?
You can buy ETC on cryptocurrency exchanges like Binance and Kraken and store it in a digital wallet. Alternatively, you can trade the currency alongside a variety of other cryptocurrencies through contracts for difference (CFDs).
With CFDs, you can speculate on the price of ETC without actually holding the currency. If you expect the price to go up, you can take a long position, and if you think it's going to go down, you can go short and still make a profit from the trade, even if the price goes down.
