Ethereum Classic is an old version of the network based on the older technology of Ethereum. It happened due to a hack on the old Ethereum network before 2016. Ethereum wanted to change the algorithm for more security and safety. Still, some members did not agree with the decision, and they stayed with older Ethereum technology and protocols. Indeed, it has a dedicated community that keeps it on track. The old version is named Ethereum Classic (ETC).
The largest cryptocurrency Ethereum and its counterpart Ethereum classic enable smart contracts, but ETH has grown in popularity more than ETC. Moreover, both of them target the same market.
Besides that, scalability is one of the most significant drawbacks of older blockchain technologies. Bitcoin has the same issues, but some cryptos work as an integral part of the main blockchain technology for its scalability.
Ethereum Classic has already been hacked, so security can be another major concern for investors. ETC’s future looks less bright because it already has an upgraded version in the top 10 list, so why will people invest in this coin? However, many cryptos and companies have some turnaround stories, so will it provide a great return? Let’s analyze the price chart now.
At the time of writing, the price of ETC was $24.30; it broke the support level around $28 and is now coming down. It is tough to identify the next support level, but the chart is bearish, so investors should think twice before investing unless it shows a bearish reversal.
On the daily chart, MACD is down; RSI is also bearish. The Bollinger Band becomes more volatile, but the candlesticks are forming in the lower half of it. Overall, most of the indicators reflect bearish signals.
Even in the weekly chart, the above three indicators are bearish, and the chart is consolidating in a range. From the weekly chart, we can identify the $16 level can be the next support of this coin.
Should you invest in this coin? Based on this analysis, you know the difference between the largest cryptocurrency, Ethereum, and its Classic version. Indeed, the classic version is less secure and scalable than its modern one.
If you trust this technology, then why should you invest in the older version? Ethereum is also down from its ATH, with a wider opportunity and brighter future. We would not suggest you invest for the long term unless Ethereum Classic changes its algorithms or announces major updates.
