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Feb 23, 2021

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October. But this is no ordinary update – participants are in a race against the clock against a “difficulty bomb,” with six ethereum improvement proposals (EIPs) vying to alter the project’s code before severe consequences set in 2019.

Ethereum is currently transitioning from a Proof of Work cryptocurrency (meaning computational power is necessary to produce new coins, process transactions, and ensure the ecosystem functions as designed) to a Proof of Stake protocol (marked by a decrease in necessary computational power and offering rewards to miners based on their ether balance) as part of a necessary switch to ensure the system is scalable and decentralized in the future.

That Proof of Stake protocol, called Casper, is a work-in-progress. Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place. Failing to do so would risk an “ice age,” where the blockchain is effectively frozen and no more blocks can be formed in it.

Ironically, the difficulty bomb was originally meant to ease the transition from proof-of-work to proof-of-stake. But delaying the bomb and reconfiguring how ether rewards are released (a part of ensuring incentives align within a properly-secured blockchain) is creating its own set of problems. Altering the code means blocks will be easier for miners to find; rewards will need to be decreased proportionally with the delay to ensure ether is produced at the same rate.

Ethereum lacks a hard cap like Bitcoin’s 21 million units, meaning blockchain participants differ in opinion about how much to reduce (or, as touted by some participants, increase) supply. Because Ethereum is a decentralized network, there is even debate about how to vote on proposals – voting via the number of coins owned has been criticized as too informal.

While this is not the first time participants have been confronted with the impending difficulty bomb, it has become increasingly difficult to reach common ground with policy between miners and investors. Lane Rettig, an Ethereum developer, explained to CoinDesk that postponing the bomb “isn’t particularly controversial” – the issuance problem, however, is, and the problems are very difficult to decouple from each other. “You can’t have one without the other,” said Rettig.

Proposals for potential solutions vary in approach – EIP 1240 seeks to remove the bomb completely; EIP 1276 looks to remove the bomb and lower issuance to two ether per block from the current three. Other proposals seek to just reduce the reward, to one or two ether. What is clear is that multiple opposing viewpoints will need to be considered to reach a solution and that the time crunch means someone will have to budge.

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Related Ticker: ETC.X

ETC.X's MACD Histogram just turned positive

The Moving Average Convergence Divergence (MACD) for ETC.X turned positive on June 27, 2025. Looking at past instances where ETC.X's MACD turned positive, the stock continued to rise in of 64 cases over the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ETC.X's RSI Indicator exited the oversold zone, of 43 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 93 cases where ETC.X's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ETC.X advanced for three days, in of 420 cases, the price rose further within the following month. The odds of a continued upward trend are .

ETC.X may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on June 17, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ETC.X as a result. In of 128 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

ETC.X moved below its 50-day moving average on June 12, 2025 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for ETC.X crossed bearishly below the 50-day moving average on June 05, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 21 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where ETC.X declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for ETC.X entered a downward trend on June 23, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Market Cap

The average market capitalization across the group is 2.48B. The market cap for tickers in the group ranges from 2.48B to 2.48B. ETC.X holds the highest valuation in this group at 2.48B. The lowest valued company is ETC.X at 2.48B.

High and low price notable news

The average weekly price growth across all stocks in the group was 5%. For the same group, the average monthly price growth was -10%, and the average quarterly price growth was -36%. ETC.X experienced the highest price growth at 5%, while ETC.X experienced the biggest fall at 5%.

Volume

The average weekly volume growth across all stocks in the group was -48%. For the same stocks of the group, the average monthly volume growth was -54% and the average quarterly volume growth was -75%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating:
P/E Growth Rating:
Price Growth Rating:
SMR Rating:
Profit Risk Rating:
Seasonality Score: (-100 ... +100)
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