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Ethereum Classic hints bullish rebound ahead of Magneto hard fork

ethereum classic etc hard fork
Photo by Remi Moebs on Unsplash
  • Ethereum Classic’s Magneto upgrade is just around the corner
  • Described in ECIP-1103, Magneto is inclusive of the Ethereum Berlin upgrade
  • ETCUSD charts are giving out bullish breakout vibes

JAIPUR (Coinchapter.com) – If Ethereum is getting a blockchain upgrade next month, Ethereum Classic (ETC) has not stayed behind either. The blockchain, born out of an ideological rift with the leading smart contracts platform, will undergo an update known as the Magneto hard fork on July 21.

What Is The Magneto Hard Fork?

Magento hard fork’s mathematics is pretty straightforward. The update is part of ECIP(Ethereum Classic Improvement Proposal)-1103. And the objective, as per the official website, is to enable “outstanding Ethereum Foundation Berlin network protocol upgrades on the Ethereum Classic network to enable maximum compatibility across these networks.”

The said hard fork would activate a series of updates that will optimize gas costs and transaction types. Which, in turn, will enhance the security of the ETC blockchain network. Fostering interoperability and immutability is the rationale behind the Magento hard fork.

How Is It Different From Ethereum’s London Hard Fork?

Ethereum’s London hard fork will majorly focus on minimizing gas fees. The update will also put a cap on fees for dapp transactions and usual monetary transfers. Additionally, EIP-1559, the most crucial protocol change written for London hard fork, will activate a transaction fee burn feature to induce ETH supply scarcity.

Related: Ethereum London hard fork set for early August deployment; ETH mum.

On the other hand, the Magneto hard fork will merely implement outstanding Ethereum’s Berlin protocol upgrades on ETC. The idea is to boost compatibility for Ethereum and Ethreum Classic.

Also, the proposed changes will “reprice the gas cost of the ModExp (0x00..05) precompile”, increase gas fees for certain smart contract functions. Apart from this, Magneto will define a new transaction type to become an envelope for future transaction types. Plus, the update will include a new transaction, “a transaction type which contains an access list, a list of addresses and storage keys that the transaction plans to access.”

ETC Breaking Out

The news of the Magneto upgrade has indeed cast bullish shadows on ETC prices. Ethereum Classic is attempting a rebound from its short-term ascending trendline support that constitutes a Symmetrical Triangle formation. ETC/USD now looks to retest the upper bound of the triangular channel.

Related: Ethereum Classic Price Surge Confirms FOMO Trumps Common Sense

ethereum classic, Ethereum Classic hints bullish rebound ahead of Magneto hard fork
Ethereum Classic looking to break out of symmetric triangle formation, Source: ETC/USD on TradingView.com

ETC could rebound upwards by 63% (equivalent to the length of the shortest side of the triangle). From current spot rates at $43, we are looking at a possible run-up towards $70.

A rebound from the same price level occurred during the June end (June to be precise).

ETC prices achieved a local top of $63. The rally was characterized by a sporadic surge in RSI indicator values and concentrated buying pressure. The same market setup is about to play out. After bottoming near 31, RSI has printed an uptrend. Plus, buying bids are stacking up en-masse (seen clearly from the 4-hour chart).

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Himadri Saha

Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.

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