Ethereum Classic is currently undergoing its largest bullish rally in 2021. Since the start of May, the asset has been up by 190% in the charts, registering a new all-time high at $118. The surge has been incredible and true to its altcoin nature, extremely volatile. However, there are signs that the pr!ce is going to exhibit a strong correction over the next few days, with its momentum slowly dying out.
Keeping the above narratives and range in mind, a short position can be entered at $115. An appropriate stop can be placed at $128, and distinguished by the Fib-line. Prof!ts can be taken at any range between $88 and $74, but a correction to $74 should unfold over the next few days. While the Risk/Reward ratio is 3.08x, it is important to note that it is incredibly risky to short ETC at the moment, since buying pressure may invariably return if market sentiment triggers another rally.
What is Ethereum Classic (ECH)?
Ethereum Classic (ETC) is an uncensored, public and decentralized blockchain platform that emerged after the Ethereum hard fork. Ethereum Classic is known as a security-oriented, uncensored, public and decentralized Blockchain platform where applications can be run. Ethereum Classic (ETC) can be defined as the non-hard forked version of Ethereum (ETH).
What is ETC Coin?
In order to explain the emergence of Ethereum Classic, we need to talk about the DAO attack. DAO (decentralized self-executing organization) stands for a decentralized and voting collective decision-making mechanism without the need for any paperwork. DAOs initially raise funds via smart contracts and distribute tokens to participants. Once the fundraising ends, the DAO starts working, token holders can vote on organizational decisions and have a say in the spending plan of the money raised in the DAO. This means that DAOs are managed only by the community.
Ethereum Classic Review
The DAO that caused ETH and Ethereum Classic to split was an Airbnb-like decentralized application. The ICO of this app grew at a rate that even its founder did not expect, raising $150 million from 11,000 participants. At the time, some developers stated that there was a flaw in the DAO code and any attack could result in disaster. Despite this, the ICO owner ignored the warnings and claimed that there was no danger.
After 28 days of ICO, the anonymous hacker who found the vulnerability started pulling ethers from the DAO and placed these ethers inside a similar DAO. The code change vote to save the ethers could not be made in time because the DAO participants were outnumbered. The value of the project tokens dropped from $20 to $13 in an instant.
Since the ether tokens stolen by the hacker were kept in the twin DAO, it was not possible to transfer the tokens to another account for 28 days. Also, since DAOs are public, everyone could see these tokens. Therefore, the hacker could not withdraw the stolen ethers to another account.
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