Ethereum Classic suffered a huge drop on a reported attack that rewrote its blockchain history, but the price might still be due for a bounce off nearby support levels.
Price tumbled below the mid-channel area of interest around the 5.400 mark on the ascending channel visible on the 1-hour time frame. This puts it on track to test the very bottom of the channel around 4.800 next.
The 100 SMA appears to be crossing below the longer-term 200 SMA to indicate that the path of least resistance is now to the downside or that bearish pressure is picking up. This could give sellers more energy to bust through the channel bottom and set off a longer-term slide.
However, RSI is already pulling up from the oversold region to signal that sellers are tired and that buyers may be returning. In that case, the channel support might still hold and lead to a bounce to the top or at least halfway through.
Stochastic is hovering around the oversold region also, suggesting that sellers might need to take a break and let buyers take over. The oscillator has yet to move north to confirm that bullish momentum is returning.
The recent drop is being pinned on almost a $500,000 loss in Ethereum Classic tokens reportedly stolen by hackers who executed a compute-intensive hack that rewrote its blockchain.
Coinbase already suspended Ethereum Classic transactions, withdrawals, and deposits as a result. In its blog post, the company shared that it “detected a deep chain reorganization of the Ethereum Classic blockchain that included a double spend.”
Developers of Ethereum Classic initially refuted news of a “51% attack” their official Twitter account affirmed:
We are now working with Slow Mist and many others in the crypto community. We recommend exchanges and pool significantly increase confirmation times.
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