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📈 Price Predictions
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Ethereum Classic Under Possible 51% Attack. ETC Devs Deny

  • Thomas Hughes
    📈 Price Predictions

    The exchange suspended movement of funds on the ETC blockchain and stated that Ethereum Classic is being 51% attacked


Ethereum Classic Under Possible 51% Attack. ETC Devs Deny

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

On Jan. 5, 2019, giant exchange Coinbase revealed they’ve detected a “deep chain reorganization of the Ethereum Classic blockchain that included a double spend”. As a result, the exchange suspended movement of funds on the ETC blockchain and stated that Ethereum Classic is being 51% attacked.

ETC developers responded on Jan. 7 by saying that the suspicious behavior was caused by a mining pool which was involved in “selfish mining” that resulted in more than 50% of the hashing power. According to them, ASIC manufacturer Linzhi was testing machines with a hash power of 1,400 Mh, which is significantly higher than what is currently available.

ETC/USD chart

Having lost 3.20% in the last 24 hours and 1.75% in the last 7 days, Ethereum Classic is currently trading at 5.03 against the US Dollar and seems poised for a bigger drop unless it can quickly climb above the 200 period Exponential Moving Average on a 4-hour chart.

The resistance around 5.63 – 5.65 rejected climbing prices multiple times, so it’s safe to say this level will play a major role for future price action. For the time being, the pair is on a downwards path and considering the latest 51% attack rumors, we will likely see a drop into 4.63. Keep in mind that the pair is trading in a range since it first hit 5.63 resistance so until a clear breakout occurs, the signals are mixed.

Support zone: 4.63

Resistance zone: 5.63 – 5.65    

Most likely scenario: range-bound trading, choppy price action with a bearish bias

Cover image via cryptocomes.com
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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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