Ethereum Classic worth has not dropped beneath $7.00 however may if bears overpower bulls following stories of another 51% attack
The worth of Ethereum Classic towards the US greenback has remained above $7.10 — regardless of its blockchain struggling a doubtlessly catastrophic attack.
ETC/USD bulls have managed to fend off bears, however may nonetheless battle to carry assist on the essential $7.00 zone if promoting strain mounts and its latest downtrend extends over the subsequent few periods.
As of writing, the Ethereum Classic neighborhood is waking to the information of another damaging report that the blockchain has suffered a second 51% attack in every week.
On August 6, mining issue for Ethereum Classic elevated by greater than 52 % inside hours, with exchanges among the many first to acknowledge that there had been another 51% attack on the network.
Binance was among the first platforms to tweet, saying Ethereum Classic had a brand new blockchain reorganisation involving greater than 4,000 blocks. This follows final week’s attack that noticed a malicious entity steal over $5 million value of the native token through a well-coordinated double-spend attack. Similarly to this case, the attacker(s) manipulated over 4,200 blocks.
Ethereum co-founder, Vitalik Buterin, noted that Ethereum Classic may maybe be higher off switching to a proof-of-stake mannequin. Ethereum itself is getting ready to modify to PoS through its ETH 2.0 improve slated for later this summer season.
ETH/USD technical perspective
Ethereum Classic has been range-bound beneath $7.50 for the final 5 days after recovering from a dip to $6.60 on August 2. According to information from CoinMarketCap, the cryptocurrency’s worth is down by 1.57% over the previous week.
Although there’s a sturdy bear presence, as advised by shrinking purchase volumes, the technical outlook suggests sideways buying and selling is the extra possible state of affairs quick time period.
ETC/USD misplaced assist on the 50-SMA at $7.298 and 20-SMA at $7.123 to the bears. However, bulls may nonetheless have a say given the marginally upturned RSI. The MACD can be forming a optimistic divergence on the 4-hour timeframe, regardless of the negativity generated by the safety dangers.
At the second, bulls want to forestall a break beneath $7.00 — an important space that have to be defended to forestall additional decline.
A robust push from present ranges may see bulls revisit main resistance at round $7.50 after which construct on this to focus on $8.00. If worth fails to carry above $7.00, a pointy decline may see bulls rely on assist on the 100-SMA.