- Ethereum Classic (ETC) down 4.7 percent
- Interoperability through Atlantis could be the shot in the arm for ETC bulls
Atlantis will signal the beginning of Ethereum Classic-Ethereum interoperability. Beneficial for both networks, ETC prices will likely edge higher. That’s despite the overwhelming sell pressure threatening to drive prices to $3.
Ethereum Classic Price Analysis
As long as blockchain transactions are collaborative and on-chain, solving scalability related frictions will always be daunting. For now, there is progress. Different networks with varying objectives are implementing solutions they see fit.
Of the many, Ethereum classic is diverging. Their first aim is to be interoperable with Ethereum for it to be competitive in the dApp arena. Luckily, Vitalik and team are already in advanced stages, trudging towards the ideal Ethereum 2.0. Then, the network would be scalable by several orders.
However, the immediate and the most pressing task at hand- and which analysts interpret as bullish for ETC, is the decision of Vitalik and team to rope in other networks for temporary scalability fixes. Ethereum, as a dominant smart contracting platform, is struggling. There is even a level of desperation, according to observers, when Vitalik proposes Bitcoin Cash blockchain to scale Ethereum.
All the same, Ethereum Classic and Ethereum interoperability implementation via the Atlantis hard fork in September will be massive. While the developer community is hard at work with Atlantis, ETC Labs-the incubator of Ethereum Classic blockchain will be collaborating with Metronome towards the interoperability goal.
Presently, ETC is down the liquidity leader board but trading 4.8 percent higher from last week’s close. Nonetheless, the coin is down 2.6 percent in 24 hours. From the chart, it is evident that ETC is under pressure.
The status of the currency is even clearer from the weekly chart. There, ETC is trading within a bear break out pattern against the USD with an important reaction point at $10. As it is, ETC is at the third phase of a typical breakout pattern: The trend continuation phase.
Reaffirming this and confirming the retest from $10 was the three-bar bear reversal pattern by the week ending June 30. After that, the week ending July 14 bear candlestick cemented bears’ position. Therefore, while ETC could edge higher because of Atlantis, sellers have the upper hand from an effort versus result point of view.
To that end, every high is a selling opportunity with the first target at $3. However, any reaction, rejecting lower prices lifting ETC above the week ending July 14 extensive candlestick could spur further demand to $10 canceling this trade plan.
Because of this candlestick arrangement, week ending June 30 bear candlestick anchors this trade plan. It has high trade volumes of 2.5 million. As a result, for bulls to be in charge, the reversal of week ending July 14 losses ought to be with high participation surpassing 2.5 million.
Chart courtesy of Trading View. Image Courtesy of Shutterstock