Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Ethereum classic [ETC] registered a significant drop in demand in the futures market. Similar bearish sentiment has been prevalent in the spot market since early July.
The price of ETC rose 10% per day after Ripple [XRP] won a partial victory in the legal battle with the US Securities and Exchange Commission (SEC) on July 13. However, the price fell shortly after.
ETC’s price action in the first quarter of this year has been commendable, but the second quarter shows poor performance. It has decreased in the past week.
Let’s see if it can still grab investors’ attention. However, the network is losing popularity from a long-term perspective. Speaking of popularity, AI has really taken off this year, with ChatGPT leading the way.
Assess fundamental data using ChatGPT
Perhaps we can use the power of AI to find out what the future holds for ETC. I asked ChatGPT about Ethereum Classic and the interaction was quite interesting. The original plan was to establish the depth of the AI before delving deeper into the type of information I wanted to pursue.
The first question asked ChatGPT for a detailed and concise explanation of Ethereum Classic and its fundamentals. Here’s the answer –
Below is the response after I asked for a shorter version.
The AI bot seems to have a good handle on things based on the information it provides. However, there have been incidents where it provided inaccurate information, hence the need to verify the information. Now that we have a good foundation, it’s time to raise the bar a bit.
But first, those who watch ETC closely may have noticed that the community hasn’t been very active. Its development has also lagged behind that of Ethereum and other networks.
Our next question focuses on determining why the Ethereum Classic network is less popular than Ethereum. It gave the following reasons:
Community Support: After the 2016 DAO hack, the Ethereum community decided to implement a hard fork that created a new blockchain network known as Ethereum, which received support from the majority of the Ethereum community. Ethereum Classic, which remained on the original blockchain, has a smaller community and fewer developers. Lack of updates: Ethereum Classic has not received as many updates and improvements as Ethereum. This has resulted in slower transaction times and less sophisticated smart contract capabilities. Perception of Immutability: Ethereum Classic’s commitment to immutability is an important feature for some users. It can also be seen as a liability by others who prefer the flexibility of a blockchain that can be updated as needed. Limited Use Cases: Ethereum has a wider range of use cases and is more widely used by businesses and developers. Ethereum Classic has a smaller ecosystem of decentralized applications and is less commonly used in commercial applications.
AI generated all the points above, but they are hard to refute. In other words, ChatGPT’s answers were spot on.
Ethereum Classic is still ahead of the competition
I was curious what the AI had to say about Ethereum Classic’s advantages over its more popular counterpart. It responded with the following points:
Immutability: Ethereum Classic is strongly committed to immutability. Transactions cannot be changed or deleted once committed to the blockchain. This makes ETC a reliable and secure platform for storing and transferring digital assets and may be particularly attractive to users who value security and decentralization over flexibility and upgradeability. Proven technology: Ethereum Classic is based on the original Ethereum blockchain, which has been active since 2015. This gives it a longer track record than many other blockchain platforms and may appeal to users who value stability and reliability. No hard forks: Since the Ethereum split in 2016, Ethereum Classic has not undergone any hard forks or major upgrades that could potentially cause network disruptions or create competitive blockchain networks. This could make it a more stable and predictable platform for developers and users.
So far so good, but the answers above got me thinking about the kind of scenario where Ethereum Classic would reach mass adoption. These were the short points that ChatGPT shared –
The above points highlighted some of the key benefits of sticking to a proof-of-work system with a strong focus on decentralization. These characteristics would make the network and its own currency more preferable, especially in the case of strict regulatory action. Regulators, especially in the United States, have taken an aggressive stance against cryptocurrencies, but not yet to the extreme.
We jailbreak ChatGPT to analyze ETC’s price action
While still thinking about Ethereum Classic’s outlook, I decided to investigate whether the AI can make insightful predictions regarding ETC’s outlook. Specifically, I wanted to know how quickly ETC can reach the $1,900 ETH press price. Unfortunately, the language-based AI algorithm could only do so much and predictions were the limit. Here’s how it reacted –
That would have been the end of that attempt, but I recently found out about the THEN (do everything now) jailbreak prompt that unlocks some restrictions. In addition, ChatGPT’s algorithm learns and can also organize raw data into a more useful format. Thus an idea was born.
What if we could somehow make ChatGPT understand the history of ETC’s price action, including past price patterns? We could possibly get it to give a more concrete answer regarding price predictions.
I asked ChatGPT if ETC could even jump to $50 by the end of the year. The bot replied in the affirmative.
Analysis of the daily price charts of Ethereum Classic
After a “fine, I’ll do it myself” moment, I started reviewing ETC’s latest price action.
On April 13, the price of ETC surged as the cryptocurrency’s recent uptrend gained momentum. The price of the coin rose to a high of $22.47, which is the highest since March 18 this year.
Bitcoins [BTC] value rose more than 80% this year, outperforming Tesla, stocks and gold. Bitcoin and other cryptocurrencies, such as Ethereum Classic, are closely related.
Ethereum Classic also responded positively to the Shapella Upgrade that took place in April. The upgrade allowed Ethereum Stackers to withdraw their tokens. The amount of Ethereum that has been staked is over $41.4 billion, according to Staking Rewards data.
Now let’s look at Ethereum Classic’s on-chart indicators.
ETC was trading at $18.75 at the time of writing. Although ETCs The Relative Strength Index (RSI) and the Money Flow Index (MFI) both remained above the neutral 50 mark, its On Balance Volume (OBV) registered a sharp decline.
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ChatGPT remains bullish on Ethereum Classic’s performance. But the stats on the chart show that the bulls and bears are in a tug of war for now.
In conclusion, ETC’s long-term prospects don’t look very bright given the minimal amount of activity on the network.
This post I asked ChatGPT if ETC rose to $50 this year, it exuded confidence
was published first on https://ambcrypto.com/chatgpt-ethereum-classic-price-prediction-18/