Ethereum Classic Rise – Bubble or More Behind It?

While Ethereum is moving sideways, Ethereum Classic has been able to recover in the last few days – what are the reasons for the rise?

November was a good month for Ethereum Classic: last week, the price rose from EUR 8.37 to a high of EUR 12.98. This is an important price for Ethereum Classic. This value corresponds to an important resistance, which is defined by temporary minima at the end of July and mid-August. In the meantime, the value has fallen somewhat, but it still ranks at EUR 11.59 at the moment.

Ethereum Classic – a protocol for the Bitcoin trader?

Have Bitcoin trader only discovered a cheap gambling opportunity or could there be more behind it? A glance at the chart leaves you with mixed feelings for the next few days: The price is currently falling and is testing a first support at 11.63 EUR. If this level is finally broken, the support at 10.41 EUR would be a level at which the price could recover and drive a rally up to values of 13.65 EUR by the end of the “Ethereum Classic Summit” conference. So let’s watch the price for Bitcoin trader at the support levels!

Ethereum Classic Summit and Sovereignty at Parity – Reasons for the crypto trader

So much for the chart, but what can be its fundamental reasons? As mentioned before, the Ethereum Classic Summit will take place in a few days. The Hong Kong conference is well attended with participants such as Jihan Wu of Bitmain, various members of the IOHK known for Cardano and representatives of crypto trader Exchanges such as Huobi.

In addition, the trading volume with Ethereum Classic on Asian stock exchanges has increased dramatically. This may also be due to the fact that OKEX, a digital asset exchange from Hong Kong, now allowed Ethereum Classic and Ethereum Futures.

After all, Ethereum Classic is playing the current parity issue into its hands: While the vulnerability is a problem for Ethereum Token Holder, the situation is not critical for Ethereum Classic Holder. This is because two multi-sig wallet optimizations were not implemented by the Ethereum Classic development team. While this meant that Ethereum Classic’s use of multi-sig wallets consumed a little more gas, it showed that suspending these updates saved Ethereum’s little brother a lot of problems.

From a long-term investment perspective, an approach discussed by Grayscale may be interesting. This Digital Asset Investment Trust already wrote an article about the Ethereum Classic investment case in August. According to this analysis, Ethereum Classic is seen as an optimal transaction system for an IoT future.

This thesis, on the basis of which Grayscale assumes a price increase to up to 150 US dollars, can of course be discussed. It is therefore surprising that IOTA is not chosen as the market comparison when considering the Internet of Things use case. Nevertheless, the report is interesting and should be recommended to the interested reader.

Attack on MyEtherWallet – The day after

Yesterday we reported live about an attack on the users of the site MyEtherWallet (MEW). Meanwhile the hustle and bustle has subsided. What happened? How can you protect yourself?

The MyEtherWallet website offers its users the opportunity to interact with the Ethereum block chain. This means that you can interact with Smart Contracts, for example to participate in an ICO that expires as an ERC20 token. MEW is regarded as one of the contact points on the Internet for these purposes.

Man-In-The-Middle attack on MEW

All the more dramatic were the messages that spread like wildfire through the Internet yesterday: “Attack on MyEtherWallet! Do not use for the time being”. The attack started at about 12 UTC and lasted about two hours.

It was targeted specifically at MyEtherWallet and users had to fear for their Ether (ETH). The attacker used for his purposes BGP a protocol to route Internet traffic between Internet Service Providers (ISP). He used it to redirect traffic to his own DNS and the users to a fake website.

The attack was therefore a classic “Man In The Middle Attack” – a technology that was decades old. The vulnerability was not due to MyEtherWallet, but to the known vulnerabilities of BGP.

Cypherpunk legend Nick Szabo took the opportunity to point out the vulnerabilities of Web Wallets. If you want to keep your money safe, you should definitely not do this online.

This way you can protect yourself

For the security of your own money, there are two – relatively simple – steps:

Always make sure that the SSL certificate to the left of the URL bar is green. If the certificate is red and crossed out, it is a compromised website.
Install MyEtherWallet locally on the computer and run it from there. MEW is a browser application, which means that MEW can also be accessed via the browser of your choice during a download. However, you can be so sure that you will not be redirected to a third website by a malicious attacker.