Ethereum Classic Dips Amid Network Upgrade Announcement
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The Ethereum Classic (ETC) network is contemplating an algorithm switch to ensure better security. Over the past few years, the ETC has suffered recurring “51% attacks,” hence the need to augment its security.
The new update proposal recommends switching to SHA 3 (Secure Hash Algorithm 3) to “greatly reduce the chances of bad actors attacking the network.” The ETC network has not fully recovered investors’ confidence since the consecutive successful network attacks over the past years.
The ETC network currently runs on the PoW consensus mechanism, which is allegedly not beneficial for the network in its current form. The nature of the PoW mechanism and the necessity to develop a secure system capable of continuously reaching consensus were the primary reasons behind the enforcement of the SHA 3 Classic Coalition.
Alex Tsankov, leader of the coalition, noted that:
“Basically, we’re done with the code. The code for SHA 3 exists. It has been working in testnet, and we’re just at the stage of building community consensus.”
Tsankov also noted that the same work was occurring on the testnet. Regarding its timeline and implementation period, he stated that:
“I believe that in the next year, at the latest, the switchover will occur.”
The coalition leader noted that SHA 3 should be “one of the biggest” upgrades to occur on the Ethereum Classic network. The upgrade, termed ECIP 1049, should improve and secure the ETC ecosystem. Tsankov added that:
“In my opinion, it is the only change that needs to happen to ETC for it to become a system that’s potentially even bigger than Bitcoin or Ethereum.”
Key Ethereum Classic Levels to Watch — June 18
Along with the rest of the crypto market, Ethereum Classic trades under a bearish sentiment on Friday. The cryptocurrency currently trades within a descending channel on our hourly chart, as bears aim to refresh the monthly low at $49.50.
That said, the near-term momentum is heavily bearish, and only a break above the $57.00 resistance, which should bring the price above the 200 SMA, can negate the present bearish sentiment.
Meanwhile, our resistance levels are $55.00, $57.00, and $59.00, and our support levels are $54.00, $52.00, and $50.00.
Total Market Capitalization: $1.57 trillion
Ethereum Classic Market Capitalization: $6.39 billion
Ethereum Classic Dominance: 0.4%
Market Rank: #22
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