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Ethereum Classic rose 4% on Wednesday.
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The cryptocurrency remains trapped by a descending trendline.
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ETC could fall to the July lows as technical indicators sound bearish.
Ethereum Classic (ETC/USD) recovered 4% on Wednesday and was among a handful of cryptocurrencies in the green. Leading tokens, Bitcoin and Ethereum, were mildly bullish at 0.19% and 0.04%, respectively.
Ethereum Classic price has been on a roller coaster for a while. It should be remembered that the cryptocurrency found a high of $45 in August, nearly four times the price from a low of $13 in July. The gains were fueled by the expectations that the Ethereum merge would attract miners to the Proof of Work blockchain. Investors traded the speculation, and when Ethereum shifted to Proof of Stake, ETC fans vanished. The cryptocurrency is now close to the July lows and traded at $16.35 at press time.
There is nothing wrong with Ethereum Classic, though, since it is reeling from the same bear market, affecting peers. If intending to trade the cryptocurrency, it is worth checking the technical levels to see the demand zones. At the moment, we are not there yet.
ETC still trapped by a descending trendline as price eyes July lows
A technical outlook shows that ETC is bearish. The MACD indicator has never moved above the neutral zone since falling into bear territory in mid-September. The cryptocurrency trades along a bearish trendline. There is a clear system of lower highs and lower highs to underline a bear market for ETC.
What could happen next for Ethereum Classic?
Bulls generated some strengths as ETC price touched $15. We expect the price to continue surging toward a resistance at $18 or the descending trendline in the short term. Bulls will have to successfully battle and win at this level for ETC to become bullish.
In the more likely bear scenario, ETC sellers will take control at the resistance or the descending trendline. That will see the cryptocurrency trade along the bearish trendline and touch the July lows of $13.