Ethereum Classic (ETC) broke years of downtrend against Ethereum (ETH) during the recent correction. While both cryptocurrencies declined heavily from their all time highs. Ethereum (ETH) showed a lot more weakness compared to Ethereum Classic (ETC) which resulted in Ethereum Classic (ETC) gaining against Ethereum (ETH). In fact, Ethereum Classic (ETC) entered a clear uptrend against its rival, Ethereum (ETH) during the month of May. This uptrend has held so far but recently ETC/ETH has lost its bullish charm. The price of Ethereum Classic (ETC) broke the 10 Week EMA against Ethereum (ETH) and is now on the risk of further decline. However, it is important to note that ETC/ETH
has already formed a double bottom. Any downside is going to be short lived unless critical market structures are broken.
The first critical level that ETC/ETH needs to defend in order for the uptrend to hold is the 21 Week EMA. If ETC/ETH breaks this critical level, all Flippening bets are off and Ethereum Classic (ETC) investors might have to face serious disappointment. Wave trend analysis for ETC/ETH readily supports a break below the 21 Week EMA. If it was all down to charts, then betting on Ethereum Classic (ETC) taking over Ethereum (ETH) might appear to be a silly bet. Ethereum Classic (ETC) has had an impressive rally against Ethereum (ETH) and appears to have topped out now. If there were no other variables to take into account, then the reasonable thing to do would be to expect Ethereum (ETH) gaining against Ethereum Classic (ETC).
Chart for ETH/USD
However, as it happens, there are other more important reasons besides the charts that are not as simple. First of all, Ethereum (ETH) is switching over to PoS (Proof of Stake). This means that most Ethereum (ETH) miners will readily switch over to Ethereum Classic (ETC) after this transition. This is already a positive for Ethereum Classic (ETC) whether Ethereum (ETH)’s PoS (Proof of Stake) arrangement works out or not. If Ethereum (ETH)’s PoS arrangement does not work out, more investors will opt for Ethereum Classic (ETC) instead of Ethereum (ETH). In addition to that, Ethereum Classic (ETC) has a limited supply whereas Ethereum (ETH) does not have a known supply. Therefore, it is likely that institutional investors may choose Ethereum Classic (ETC) over Ethereum (ETH) especially if something goes wrong with Ethereum (ETH).
When something is built on weak foundations, it can be expected to fall at any moment. In addition to Ethereum (ETH)’s own problems, it has also made a lot of enemies. Competitors like Tron, Eos and Qtum are not the only interest groups that would like to see Ethereum (ETH) fall. Most Bitcoin (BTC) maximalists who believe that majority of the altcoins are scams have been very anti Ethereum (ETH) recently. Most of these reasons have to do with Ethereum Classic (ETC) benefiting off Ethereum (ETH)’s misery, but there is a lot more to it than just that. Recently, Ethereum Classic (ETC) held a successful ETC Summit in which ETC Dev Members gave a very comprehensive presentation as to Ethereum Classic (ETC)’s roadmap towards IOT (Internet of Things).
Chart for ETC/USD
Ethereum (ETH) failed to give anything unique to the market apart from the enormous number of ICOs held on it. Ethereum Classic (ETC) on the other hand has been wise to avoid that path and has come up with its own USP (unique selling point), which is IOT (Internet of Things). Now, ETC Dev members didn’t just up and say, “Oh we don’t have a value proposition, let’s go after IOT”. In fact, the Ethereum Classic (ETC) blockchain is perfectly built for IOT. It has the two basic requirements of any IOT compatible blockchain and those are: decentralization and immutability. Ethereum (ETH) has neither of the two. Blockchain is a big deal, for now but it is not going to be a hot topic for long. Soon or later, people are going to realize that they don’t care if it is Ethereum Classic (ETC) or Ethereum (ETH).
All they care about is application and real life use cases. When that happens, people are not going to care about the number of ICOs built on a blockchain. By the way, let’s address that. What does it mean to build an ICO on a blockchain? So, you just used Ethereum (ETH) to raise money and you call it an ICO ‘built’ on Ethereum (ETH)? That’s ridiculous. Ethereum Classic (ETC) being aware of this decided to focus on the things that matter long term. A few years from now when the gold rush is over, people are going to be more interested in what a blockchain actually does! That is when we will see Ethereum Classic (ETC) leading from the front while projects that were only focused on raising money will fade away as their founders go home with all the money they have made.