Ethereum Classic (ETC) is one of the oldest cryptocurrencies that still has maintained its place among the top altcoins as it has reached a market cap of over $10 billion and trades with a price of over $100. It was created as a result of a split in the developer and user community just like with Bitcoin and Bitcoin Cash.
The functionality differences increase over time, creating large price and capitalization size differences. However, Ethereum classic is still a great pick to diversify your cryptocurrency market investment portfolio.
Therefore, let’s look at what ETC is and the future price prediction for the upcoming years.
What is Ethereum Classic?
Ethereum classic coin was in July of 2016 created as a result of a split in the Ethereum community after the original blockchain got hacked. Fundamentally, the two blockchains – Ethereum and Ethereum Classic were similar at first. However, over time, differences arise as the Ethereum classic network community wanted to keep the blockchain running on a proof-of-stake consensus algorithm and secure blockchain immutability. However, the Ethereum community wanted to develop it into a much advanced, proof-of-stake based digital currency.
As with Ethereum, the Ethereum classic uses a Touring-complete virtual machine called Ethereum Virtual Machine (EVM) to execute scripts and connect its nodes. Its total supply is hard-capped at 210,700,000 ETC as of December 2017. Similar to Bitcoin having reward halving, Ethereum classic reduces its block reward by 20 percent every 5,000,000 blocks. Therefore, in some aspects, Ethereum Classic has become more similar to Bitcoin than its original source – Ethereum.
Today, we can see that Ethereum Classic has fallen behind the original Ethereum, which the Ethereum Foundation runs. Ethereum trades with a much larger market capitalization and has gained much larger popularity. However, ETC is still very popular and can be purchased on practically every cryptocurrency exchange.
Should you invest in Ethereum Classic?
When comparing Ethereum vs Ethereum classic returns, we can see that Ethereum has performed substantially better over the past years. Looking at the technical analysis over the past years, ETC/ETH has traded in a range of around 0.025-0.060, indicating a cyclical nature for which of the two crypto markets perform the best. However, in 2020, we saw Ethereum price outperform ETC price substantially, leading to a new several-year low for ETC/ETH around 0.005
When looking at the performance against Bitcoin price, even worse performance as seen. The ETH/BTC price has dropped a lot more from the high of 0.004 in 2018 to 0.0002 during the first months of 2021. Therefore, the digital coin is not as attractive for a serious investor, despite bullish Ethereum Classic news frequently seen. The demand for ETC coin simply cannot outmatch that of the two market leaders – Bitcoin and Ethereum.
Looking at the ETC price against USD, Ethereum classic forecast is bullish as a rapid spike higher was seen over the past weeks. However, currently, the ETC price is in a retracement phase as the previous momentum is exhausted. This means that Ethereum Classic price will likely drop even further, meaning trading it right now might not be the best option.
Ethereum Classic Price Prediction for 2021
Ethereum Classic forecast for 2021 is bullish overall. As seen on the chart, the bullish momentum has resumed over the past months as the market initially spiked to the $50 mark in the middle of April and set a further upswing of more than 400 percent in May. Therefore, investing in ETC against fiat currency or their CFDs should lead to further gains over the remainder of 2021.
Once the current several-week retracement ends, trading the cryptocurrency to the upside should result in further gains as the next major price milestone for 2021 is set at $1,000. If we consider two more upswings as seen over the past months, this ETC prediction should be reached by the end of summer.
Several other ETC/USD predictions estimate a much lower maximum price of around $400, with minimum price targets even lower. However, when considering the current bullish momentum, we should see ETC push much higher this year.
This price prediction assumes that the overall crypto market continues gaining ground later this year. As with most altcoins, if the overall market starts to slow down, we should see it reflected in the Ethereum Classic price as well.
Ethereum Classic Price Prediction for 2022
Ethereum Classic price forecast for 2022 is also bullish. Much depends on what the coin price will do later this year. However, if the current Ethereum price prediction holds, we should see Ethereum classic reach a minimum price of $500 and an expected maximum price of $2,000.
This, however, could be invalidated if the current bull market ends later this year as Ethereum Classic cryptocurrency is known to trade in a relatively wide range. In this scenario, Ethereum Classic could spend the upcoming years retracing most of its gains, as seen during 2020.
ETC 5 years Price Prediction
According to crypto expert Bobby Lee, the Crypto market overall is set to continue increasing over the next five years as Bitcoin is expected to reach the $300,000 mark. Therefore, ETH Classic prediction remains bullish also for the five year period.
As Ethereum Classic continues developing further features such as smart contract and decentralized app execution on the Ethereum network, we expect Ethereum Classic prediction to reach the $5,000 mark by 2026. Making a long forecast for the upcoming years is a relatively safe bet as it is still among the top traded assets on practically any crypto exchange.
Overall, the Ethereum Classic price has performed excellently over the past months as several minimum price targets have already been reached. Our Ethereum classic forecast is very bullish for 2021 and 2022 as a result of the rapid move towards the current all-time high of $175 and a gain of around 3000 percent since the start of 2021.
As always, this investment advice depends on your personal risk tolerance. We believe that investing in Ethereum Classic will yield good returns over the following years. However, the market leaders – Bitcoin and Ethereum will likely outperform ETC.
While trading or investing in Ethereum Classic, read our price prediction articles on other great altcoins such as Monero and Bitcoin Gold. To learn more, see our investing in Cryptocurrencies step-by-step guide.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.