Is Ethereum Classic losing the technical battle at $34?

• Ethereum Classic is trading slightly below key support of $34

• The token is expected to benefit from the Ethereum merge; however, disputed

• Ethereum Classic could head to $26 next if it loses the $34 technical battle

Ethereum merge euphorbia seems to be now fading. As the September 15 date fast approaches, Ethereum and hard fork Ethereum Classic ETC/USD are falling. That, of course, is not to mean that the hard fork will not have a bullish impact on price. If speculations are to be believed, Ethereum’s price will hit $5,000 after a successful merge. Its hard fork, Ethereum Classic, is expected to surge too on the influx of PoW to the protocol. The idea is still disputed if, indeed, Ethereum Classic will benefit. ETC gains have been direct as a result of expectations. 

It is too early to speculate that ETC will benefit from Ethereum Merge. However, speculations will remain as cryptocurrencies are known to benefit from them, if positive. Thus, we cannot underestimate how much ETC could surge in the 3 weeks to the merge. We still urge caution as the technical indicators are currently not pricing to a potential merge rally.

Ethereum Classic could retest $26 as the price remain bearish

Source – TradingView

Ethereum Classic trades at $32. The price below key support at $34 indicates bear momentum. Using a short time frame of 4 hours, we can see that the MACD line has moved above the moving average. That suggests a short-term price appreciation. The momentum indicator still remains in bear territory. 

Concluding thoughts

Potential price discovery is expected to push Ethereum Classic to $34. However, the token will remain bearish if the price fails to break past $34. A price rejection will see bears take control, with ETC potentially crashing to $26.