Ethereum Classic has been aggressively making its way back towards the all-time-highs of $47.37 versus the USD. On Monday, it broke above the daily Ichimoku cloud in one strong bullish move. What’s next?
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Ethereum Classic Technical Analysis
On Tuesday’s Asian trading session, ETC/USD broke above the resistance level of $39.60 and the 23% Fibonacci retracement level in yet another strong bullish movement. At the time of writing, it is testing the medium-term resistance level of $42.
It has broken above a bearish daily Ichimoku cloud. With the Tenkan line and Kijun line also confirming a Golden Cross.
The Chiko span has also broken above the delayed cloud, giving us three bullish confirmations from an Ichimoku Kinko Hyo point of view.
But as our Ichimoku strategy goes, we could certainly see a pullback towards key support levels before ETC reaches for new highs.
What is Ethereum Classic?
Ethereum Classic is a split from Ethereum. It’s is an open-source, public, blockchain-based distributed computing platform featuring smart contract functionality.
Both blockchains are identical in every way up until block 1,920,000. That’s where there came a hard-fork to refund The DAO token holders.
The DAO is short for Decentralized Autonomous Organization, which raised $150m in ether earlier this year during a public crowdsale.However, the DAO was hacked, attacked or otherwise compromised as the votes were getting in. The Ethereum community eventually held a vote, with the majority of participants agreeing that they wanted to change Ethereum’s code to get the funds back to investors – and away from the attacker.
People who were opposed to the hard fork decided to stick with the original chain calling it “Ethereum Classic.”
Now while Ethereum has risen a lot higher in terms of value compared to Ethereum Classic, the latter appears to be on a faster track to recovery from the losses earlier this month.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.