Chart for ETC/USD (4H)
As the cryptocurrency market was falling apart, there were a few cryptocurrencies that stood their ground apart from stable coins. One of those cryptocurrencies was Ethereum Classic (ETC) and the other was ZCash (ZEC). Both of these coins appeal to a similar demographic and both of them have declined significantly in value during the bear market. However, there is more to it than that. Both of these cryptocurrencies have been around for long but they have failed to rally in the same way as the rest of the market. This means that for major bagholders of both Ethereum Classic (ETC) and ZCash (ZEC) that are waiting on the two cryptocurrencies to reach their true potential, it is a too big to fail kind of deal.
Ethereum Classic (ETC) is one of the few blockchains in this market having not just a loyal but also a very well informed community. That being said, a loyal community does not mean anything if the project is not going anywhere. The recent 51% attack on Ethereum Classic (ETC) was a major failure on part of the teams supporting Ethereum Classic (ETC). Perhaps if the ETC Dev team was still around this may not have happened. The current teams supporting Ethereum Classic (ETC) including ETC Labs are focused on seeing Ethereum Classic (ETC) gain more adoption but so far their efforts to push for that adoption are not adequate. That being said, Ethereum Classic (ETC) is the kind of blockchain that could succeed in becoming a major player in the IOT (Internet of Things) industry. This is why ETC Labs is focused on getting more Dapp developers onboard to build innovative applications on the Ethereum Classic (ETC) blockchain.
Chart for ETCUSDShorts (1D)
With ETC Dev out of the picture, let us keep principles and morals to a side and talk about the future of this cryptocurrency. The only reason DFG took over this blockchain is because they believed they could do something better with it. They were not that naïve to have ignored that Ethereum Classic (ETC) could very well be subject to a 51% attack under current conditions considering it was also almost 93% Nicehashable. So, could Ethereum Classic (ETC) succeed as a blockchain? We do not know yet, we don’t know what plans DFG, DCG or IOHK have for Ethereum Classic (ETC) and if they will succeed. The reaction of some of Ethereum Classic (ETC)’s own prominent figures to the attack was alarming and lacked the confidence investors were looking for.
Even after the attack, there does not appear to be an effective coordination to move towards solutions. However, Ethereum Classic (ETC) has now become too big to fail for some of these backers. Even if they do not have any intentions to make anything out of the blockchain, they are still going to protect their investments and defend against massive declines. If ETC Labs succeeds in steering Ethereum Classic (ETC) in the direction they are headed, there is no doubt that Ethereum Classic (ETC) could become a serious Ethereum (ETH) competitor in the future. That means that those who bought Ethereum Classic (ETC) today thinking the cryptocurrency is just getting started and has room for a lot of growth could stand to win big time. The number of shorts is also about to see a massive decline which will alleviate more than two years of sell pressure on the cryptocurrency. Could all this be a whale ploy to just gather cheap ETC before future developments? We do not know, but given the risk reward of ETC/USD at this point, it is a reasonable investment to make despite the short term setbacks.