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Ethereum Classic (ETC) Hard Fork Might Not Revert Bearish Sentiment [Video]

Ethereum Classic (ETC) which was the result of a fork in Ethereum platform, is undergoing a hard fork itself on Tuesday, May 29th. However, this time the fork’s goal is to make sure that ETC mining remains profitable, not to create a new cryptocurrency. The change is going to disable a feature that is designed to make it harder to mine the protocol's rewards. More specifically, they are removing something called a “difficulty bomb” at block 5,900,000. If they don’t then mining will not be profitable in a few months from now. Comparing to Ethereum, Ethereum Classic is a smarter blockchain, a network, a community, and a cryptocurrency that takes digital assets further. In addition to allowing people to make transactions, ETC allows for complex contracts that operate autonomously and cannot be modified or censored. Unlike Ethereum, the ETC team has no plans to migrate to Proof of Stake (PoS) and that is why the Difficulty Bomb needs to be removed to avoid a collapse of the network. Looking at ETC’s price action versus the USD, it has been pretty choppy since its initial surge back in May 2017. Once it reached the all-time-high level of $47 in January 2018, it has continued to be on a rollercoaster ride while being supported at $13. It is currently trading below the daily Ichimoku cloud and the bearish sentiment could drive it back to $13. The hard fork might help reconstruct confidence in ETC's value, however, from a technical point of view, we don’t have an outstanding bullish indication. Thanks for watching, invest responsibly, and I’ll see you with more updates tomorrow.


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Kiana Danial, CFP

Kiana Danial is an award-winning, internationally recognized personal investing and wealth management expert.

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