Ethereum Classic, like Bitcoin, employs a Proof of Work (PoW) consensus mechanism for validating transactions. To ensure network security, miners process transactions and create blocks by using their computation power and time.
Transaction order is important while using the network, and miners solve complex puzzles to produce blocks, which helps to protect the network from malicious actors.
Ethereum Classic Features
One of the key features of Ethereum Classic is its ability to run smart contracts on the network. These smart contracts are self-executing agreements or if-then conditions written in code, allowing transactions to occur without any third-party involvement, such as a lawyer.
The “Difficulty Bomb” mechanism is designed to gradually increase mining difficulty and push the Ethereum chain from the PoW consensus mechanism to Proof of Stake in the future. The network received an Ice Age update on block 200,000 to introduce the upgrade.
Ethereum Classic, however, permanently defused the difficulty bomb on block 5,900,000 after a hard fork, ensuring the longevity of its PoW consensus mechanism. Ethereum Classic is a highly popular hard fork of any blockchain and remains in demand even today. The platform shares many features with Ethereum, owing to its use of the same base code.
However, Ethereum Classic differs from Ethereum in that it chooses to remain immutable and offers a permanent Proof of Work system for users to participate in.
The Ethereum Classic token is responsible for maintaining and operating the ETC network. Users can realize value by participating in various network activities. By holding ETC, users can use smart contracts, make transactions on the network, interact with dApps, and participate in governance votes.
ETC Token Technical Analysis & Price Prediction
The ETC tokens are on an uptrend after crossing a major resistance during November last year. The current resistance level for the ETC price stands at $21.04, while the immediate support level is at $19.23.
The bulls have reclaimed this level and are now trying to break the resistance level. If they could make a breakout, then they will move towards the 2nd resistance of $23.47
However, the recent trading sessions before this support reclaim have shown a weak trend, despite bulls’ efforts. The RSI level, which has decreased from 74 to 52, confirms this bearish trend. The grip of bulls on the ETC price has weakened and the bears made the ETC price fall below the 50-Day EMA. The bulls are now at the 150-Day EMA, which is at the level of $18.94.
Conclusion
Ethereum Classic uses Proof of Work for transactions and supports smart contracts. The ETC token maintains the network. Recently, the bearish trend caused the ETC price to drop below the 50-Day EMA.
Technical Levels
- Support Levels: $19.23 and $17.21
- Resistance Levels: $21.83 and $23.47
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Source: https://www.thecoinrepublic.com/2024/01/10/etc-price-analysis-support-stayed-intact-for-bullish-investor/