Posted in Overview

What Is Ethereum Classic (ETC)?

Ethereum Classic is a decentralized, open-source platform that runs smart contracts on a blockchain. It was formed in 2016 after a hack of The DAO, a smart contract running on the Ethereum blockchain. The original blockchain was split in two, with most users opting to reverse the hack and return the stolen funds.

The Ethereum community was split on how to proceed after The DAO failed. Some people believed that the investors should suffer the consequences of investing in a flawed project, while others thought it would be best to roll back the blockchain and create a bailout. In the end, the majority of the community decided on the latter course of action.

Ethereum is a blockchain platform that, like bitcoin, can be used to record transactions. However, Ethereum’s key advantage is its ability to run self-executing smart contracts.

Smart contracts on Ethereum Classic are enforced through decentralized governance, meaning that they can be carried out without involving a third party, such as a lawyer. Smart contracts work similarly to if-then statements–if the actions required in the contract have been fulfilled, then the corresponding contract parameters would be completed. However, if the contract parameters haven’t been met, there might be penalties like fees or voiding of the initial agreement depending on what terms were established at the beginning ofthe relationship.

An example of this would be if, in a real estate transaction, the contract said an upfront deposit was due on a certain date, but the funds were not received. The smart contracts are within a distributed ledger or blockchain network. A distributed ledger is tracker for transactions and contracts that’s kept and maintained without any central authority controlling it..

The terms of an agreement between a buyer and seller are written in code, which is self-executing and does not need external monitoring.

Even though they are both after the same market and offer smart contracts, Ethereum has become more popular because it is seen as more legitimate. Also, ETH is only second to BTC in value.

The biggest issue that Ethereum Classic currently faces is scalability. The network can handle 15 transactions per second which lags significantly behind other payment networks like Visa, who processes one thousand transactions per second. There have been many software upgrades for Ethereum Classic, but the scalability of its payments systems continue to be a challenge.

Not to mention, security is prone to stay an issue with smart contracts–especially because Ethereum Classic has already had a hack where millions of dollars were stolen. These concerns have the potentiality to stop smart contracts from being used in large financial and real estate deals.

The cryptocurrency market is still developing, so it’s unclear how regulations will change Ethereum Classic and other virtual currencies. For example, the Security and Exchange Commission does not consider Ethereum or Bitcoin securities because they’re decentralized networks.

Some cryptos may not be approved as securities, which means they could have challenges being included in various financial products that contain a basket of securities, stocks, and bonds. These products include exchange traded funds and mutual funds. In the future, Ethereum Classic’s regulatory landscape is uncertain. The same goes for other blockchain networks that aren’t as popular.

Posted in Taxes

Taxes on Ethereum Classic (ETC) in the USA: A Complete Guide for Financial Planning & Tax Implications of Holding ETC in 2021

Ethereum Classic (ETC) is a cryptocurrency platform developed from the original Ethereum open-source blockchain software. It is an open, permissionless platform that facilitates the development of smart contracts and distributed applications (dApps). With ETC, users can take advantage of its decentralized network to build their own applications and transfer tokens or funds securely and quickly. As with other cryptocurrencies, taxes are associated with investing or using ETC in the United States.

Income Tax: In the US, income generated through ETC investments is taxed as capital gains. This means that any profits made through trading ETC will be treated similarly to stock market investments when it comes to taxation. The US Internal Revenue Service considers cryptocurrency transactions as property transactions and taxes them accordingly, so investors will be liable to pay tax on any profits made through trading ETC at their applicable federal or state capital gains rate. Furthermore, any income generated by using services related to ETC such as mining also needs to be reported for tax purposes.

Sales Tax: Sales tax applies when someone buys goods or services with ETC in the US. This includes items like digital goods purchased from merchants that accept cryptocurrency payments. Sales tax rates vary from state to state; in some states the sales tax rate can be as high as 10%. For example, if someone buys a product from a merchant who accepts cryptocurrency payments for $100 and based out of a state where sales tax is 10%, then they will have to pay $10 of taxes along with their purchase price.

Employment/Wage Tax: If someone earns wages or salary by providing services related to ETC, then they are liable to pay employment or wage taxes in accordance with IRS regulations. This could include activities such as mining or providing technical support for companies that use the ETC platform in their operations. Employment/wage taxes are usually withheld by employers before they are paid out so employees need not worry about being burdened with these after-tax deductions themselves. However, they still should report these wages on their annual income tax returns so they can benefit from eligible deductions and credits available under US federal law.

Gift/Estate Tax: In some cases people may receive gifts of value in the form of cryptocurrencies such as ETC which could potentially attract gift/estate taxes depending on certain factors like source and amount of gift received etc.. Gift/estate taxes generally apply when one receives more than $15000 from any single source during a calendar year and could go up significantly if this amount exceeds certain thresholds set under federal law for taxable gifts given/received during lifetime transfers between family members as well as upon death due to inheritance transfers between family members etc..

Overall it’s important for anyone dealing with investments related to Ethereum Classic (ETC) to understand how different types of taxes apply before taking action on any trades involving this asset class since there may be significant penalties involved otherwise due noncompliance with applicable laws regulating taxation around such transactions in the United States environment. It’s always recommended that people consult professional tax advisors or financial planners prior making decisions related involving taxation around trading activities involving new emerging asset classes like cryptocurrencies since legal rules governing such areas tend change frequently over time due advances in technology driving innovation within this space ranging from newly emerged protocols using platforms like Ethereum Classic (ETC) all way up higher level derivative instruments that arrive later down line which provide users access even more innovative ways capitalize on opportunities found within burgeoning digital asset sector without getting exposed too much risk initially discussed here today regarding taxation associated investment activities around assets such these scenarios previously mentioned relating context user gets involved Ethereum Classic (ETC) either capacity investor trader consumer etc..

Posted in Price Prediction

Ethereum Classic (ETC) Price Prediction

According to our current Ethereum Classic price prediction, the value of Ethereum Classic is predicted to drop by -4.99% and reach $ 19.19 by January 15, 2023. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 26 (Fear). Ethereum Classic recorded 13/30 (43%) green days with 9.44% price volatility over the last 30 days. Based on our Ethereum Classic forecast, it’s now a bad time to buy Ethereum Classic.

Posted in Price Prediction

ETC Forecast: to drop by -1.49% and reach $ 15.40

According to our current Ethereum Classic price prediction, the value of Ethereum Classic is predicted to drop by -1.49% and reach $ 15.40 by December 26, 2022. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 26 (Fear). Ethereum Classic recorded 11/30 (37%) green days with 6.99% price volatility over the last 30 days. Based on our Ethereum Classic forecast, it’s now a bad time to buy Ethereum Classic.

Posted in News

This metric could be a game changer for ETC and its investors

Ethereum Classic [ETC] retested its short-term descending resistance line last week. The price delivered a sideways performance rather than a bearish retracement or a bullish breakout. Fast forward to the present and at press time, ETC showed signs of price slippage.

ETC has been trading alongside the resistance line for the last few days and recent observations point toward a potential bearish outcome. One of those observations was market cap outflows. ETC’s market cap fell by roughly $82 million in the last 24 hours at the time of writing.

This was the largest daily drop in market cap that the cryptocurrency experienced in the last seven days. Furthermore, the bearish observation wasn’t the only indicator of Ethereum Classic’s bearish start.

The social dominance metric also witnessed a significant downfall in the last 24 hours. This indicated that investor attention was shifting elsewhere.

The Binance funding rate also tanked substantially especially in the last two days. This confirmed that the demand in the derivatives market also subsided.

The market cap drop and other metrics pointed towards a bearish bias. While this looks like the start of a bearish retracement, there were some factors that stood for ETC while some that stood against it. One of the key factors suggesting a significant likelihood of a bearish outcome was ETC’s price action.

ETC was down by roughly 5% in the last two days. While this might seem like a small drop, the key takeaway was that it threatened to push the price back into the narrow support and resistance range.

Investors can expect a strong bearish performance if the selloff gained traction, resulting in more outflows. On the other hand, there was still a significant probability that ETC whales may scoop up more ETC. This could potentially support a bullish bounce.

The main reason why there was a likelihood of a strong bullish bounce was the fact that investor sentiment witnessed a change of heart. However, weighted sentiment still witnessed an upsurge despite the overall downside.

There was no doubt that Ethereum Classic looked bearish at press time. However, the weighted sentiment could be a game-changer as far as expectations were concerned.

If investor sentiment continues rallying, then it means we might see significant accumulation. Such an outcome will likely cushion ETC from more downside and potentially favor the bulls.

Posted in Price Prediction

Ethereum Classic Forecast: Extreme Fear and drop by -16.53%

According to our current Ethereum Classic price prediction, the value of Ethereum Classic is predicted to drop by -16.53% and reach $ 16.22 by December 11, 2022. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 25 (Extreme Fear). Ethereum Classic recorded 10/30 (33%) green days with 8.51% price volatility over the last 30 days. Based on our Ethereum Classic forecast, it’s now a bad time to buy Ethereum Classic.

Posted in News

Ethereum Classic (ETC) Sees Over 7% Gains Amidst Crypto Market Recovery

Ethereum Classic (ETC) is currently trading at $19.65, an increase from its previous price. The crypto, presently ranked at number 23 on CoinMarketCap, shows signs of life. The 24-hour trading volume of the token stands at $332,995,651.

The 24-hour low of ETC stands at $18.20, while the high was at $20.15. The market capitalization of Ethereum Classic also gained above 8% and is currently valued at $2,704,849,374.

The crypto market, in general, has been on a downward trend. This week has been more positive, with some tokens rallying positively.

Traders are still uncertain about the actual direction of the market and if support levels will finally outperform resistance. Institutional traders are increasing their crypto holdings with the long term in view.

Currently, trust in cryptocurrencies hit an all-time low with the unraveling of FTX. However, some traders are consolidating positions and buying the dip.

Macroeconomic factors are mostly responsible for the price movement noted in cryptocurrencies. Ethereum Classic is rising due to traders’ optimism about the token’s value.

Built from an Ethereum hard fork, the wide adoption of the parent blockchain has also helped the project. However, Ethereum itself is currently undergoing a bearish phase. The proof of stake migration has not significantly impacted the price of ETH, since it has continued to dip.

Ethereum Classic, on the other hand, has no plans to switch to proof of stake and is still being mined. The motivation of profit by miners has helped its cause even in the prolonged bear market of 2022.

The announcement by the president of El Salvador, Nayib Bukele, to purchase 1BTC a day also helped the market to rally.
ETCUSD

Ethereum classic, despite its rally, will encounter resistance at the $21.7 and $26.5 levels if it goes on a bullish run. The support levels of the crypto asset stand at $15.9; if it breaches it, the coin will plummet further to the $13.2 level.

The macD shows signs of tentative price movement; this means the positive momentum noted in the asset; might not be sustained.

The formation of a golden cross is present on this chart, with the 50-day MA crossing the 100-day MA. This implies that a bullish run is to be expected in the short term for the Ethereum classic.

Market forces and investor sentiments will also play a major role in the short-term price movement. Individuals are adjusting their investment portfolios, with fear and panic commonplace in the market.

With the current price trend, it is not likely that the Ethereum Classic will return to its all-time high of $176.16 anytime soon. Crypto analysts believe that Ethereum classic will recover from the slump in the coming months.

Despite its close affiliations with Ethereum, the price correlation between the two assets has barely existed.

Posted in Price Prediction

ETC Price Prediction

According to our current Ethereum Classic price prediction, the value of Ethereum Classic is predicted to rise by 5.65% and reach $ 18.51 by November 27, 2022. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 22 (Extreme Fear). Ethereum Classic recorded 12/30 (40%) green days with 10.96% price volatility over the last 30 days. Based on our Ethereum Classic forecast, it’s now a bad time to buy Ethereum Classic.

Posted in News

Ethereum Classic: How long should you continue HODLing during this crypto winter

Ethereum Classic [ETC] sellers inflicted a relatively unhindered bearish pull over the past three months. The ongoing surge in selling pressure led the price to dip toward its vital support zone in the $21-$22 range.

The bearish pullbacks positioned ETC in a south-looking channel while keeping the long-term recovery hopes alive. However, the near-term market structure formulated a rather conducive environment for the sellers.

At press time, the alt traded at $20.41, down by 11.23% in the last 24 hours.

ETC’s decline phase kept snowballing after marking consistent reversals from the upper trendline of its descending channel (yellow). For over three months, the buyers have exhibited their willingness to bounce back from the $21.1 support mark.

A close below this mark could likely open doorways for an accelerated decline toward the lower trendline of the down channel.

Although ETC lost over half its value in its current patterned oscillation, the altcoin did not mark a substantially volatile phase on the daily chart. As a result, the price action kept strolling near the 20/50 EMA.

Going forward, a sustained close below the $21-mark level can position the coin for an immediate downside in the coming sessions. This decline would pull ETC toward its less liquidity range, as evidenced by the visible range profile.

Any decline below the boundary of the current pattern would hint at a one-sided bearish edge. The first major support level, in this case, would lie in the $16.5 region, followed by the $13.75 baseline.

If the broader sentiment marks any improvements, ETC buyers could enter into an accumulation phase. In these circumstances, the buyers could continue facing barriers near the upper trendline of the down channel in the $26-$27 range.

The Chaikin Money Flow (CMF) and On-Balance-Volume (OBV) marked a streak of higher troughs over the last few days while bullishly diverging with the price action. But the CMF still needed to find a convincing close above the zero mark to affirm a buying edge.

While the price action has been on a consistent slump since mid-August, ETC’s social dominance revealed mixed signals. Empirically, ETC has exhibited a relatively high correlation to this metric on a daily basis.

The long-term price plunge entailed a decline in social dominance as well. But ETC marked a substantial peak in its dominance during the first week of November. The price action is yet to react to this spike. Nonetheless, the metric also marked a plunge over the past day.

Buyers should keep a close eye on Bitcoin’s movement to gauge any improvement potential on this metric. More importantly, the broader market sentiment and other on-chain developments could be vital in influencing future movements.

Posted in News

Ethereum Classic: Forecasting ETC’s potential to revive from this support level

Ethereum Classic [ETC] broke out from its long-term falling wedge to depict an ease in selling pressure over the past week. However, the altcoin’s Open Interest in the last 24 hours across all the exchanges highlighted an edge for sellers.

After a relatively bright week for the bulls, buyers ramped up their efforts by pushing Ethereum Classic [ETC] toward the 200 EMA (green) resistance.

The selling re-emergence from this barrier pulled the altcoin below the four-hour 20 EMA to reveal a near-term ease in buying power.

The altcoin’s reversal from the $25.57-mark induced a string of red candles that highlighted an increased bearish edge. The alt could enter a potential squeeze in the coming sessions. At press time, the altcoin was trading at $24.25, down by nearly 3.86% in the last 24 hours.

ETC declined by over 47% after rebounding from the $39-ceiling in mid-September. As a result, it hit its two-month low on 13 October.

Over the last few days, ETC broke into high volatility after jumping from the $21-zone support range. This buying comeback helped the bears find a close below the 20/50 EMA in the four-hour timeframe.

Meanwhile, the gap between the 20 EMA (red) and the 50 EMA (cyan) undertook a bullish crossover to depict a near-term bullish edge.

From now on, the altcoin could find immediate support in the $23-$24 range in the coming times. In this case, any rebound could see a bounce-back toward the $26 zone. Any bearish crossover on the 20/50 EMA could hamper the chances of a strong rebound.

Should the broader sentiment reignite the bullish vigor, the altcoin would likely see an immediate retest of the $26 ceiling. A close above this resistance range would confirm a robust shift in the near-term momentum in favor of buyers.

An analysis of the funding rates revealed a rather increasing edge for the buyers over the last few days.

These rates strived to hover in the positive zone as they continued their uptrend. Any close above the zero mark would confirm the buying edge. This edge could aid the bulls in protecting the immediate support on the charts.

But the Open Interest across all exchanges over the last 24 hours decreased by over 6% over the past day. The corresponding decrease in the price action highlighted an advantage for the bears.

Finally, broader market sentiment and on-chain developments would be vital in influencing future movements.