Ethereum

Ethereum Risks Drop Below 3,2k As ETH Price Encounters Strong Resistance

Ethereum’s native token Ether (ETH) threatens to drop below $ 3,200 in the upcoming sessions as its rally encounters tough resistance area.

Specifically, the ETH price has risen by almost 22% in the previous monthly time frame after a market-wide bull run. This propelled the second largest cryptocurrency by market cap from under $ 3,000 to over $ 3,650 in the first eight days of October, leading to more bullish projections.

“$ 6,000 is going to happen quickly; $ 10,000 programmed ” Note Technical chartist Crypto Cactus based on Twitter. David Gokhshtein, CEO of the PAC Protocol distributed data network, also predicts an upward target of $ 10,000 for Ether.

However, ETH price is likely to dive into a combination of three notable bearish indicators that could limit upside moves and could contribute in part to recent price gains.

Two resistance zones and rising wedge

The three bearish indicators that can move Ether into a bearish reversal are the rising wedge, the descending trendline resistance, and the temporary resistance bar, as shown in the graph below.

The ETH / USD 4H price chart has a bearish confluence. Source: TradingView.com

The rising wedge occurs when ETH recovers, leaving a series of higher and lower highs. Meanwhile, the cryptocurrency uptrend is emerging against the falling volume, showing traders’ lack of confidence in the upside move.

Additionally, the top of the structure – the point where its two trendlines converge – is around two historical areas of resistance. The first bar is a temporary resistance bar that, as shown in the graph above, previously indicated the spike in ETH above $ 3,650.

At the same time, the second resistance is the descending trendline, which is more visible on the lower daily chart at around USD 3,800.

The daily ETH / USD price chart shows the resistance of the descending trend line. Source: TradingView.com

Therefore, the top of the rising wedge and two resistance trend lines represent a downside risk for Ether. In this case, the Ethereum token collapses to the maximum height between the upper and lower trend lines of Wedge.

Related: 3 factors that could cause Ethereum price to rise 100% in the fourth quarter

With that, it’s on its way below $ 3,200 and will act as an accumulation zone for Ethereum traders in the first half of September 2021.

Inverse head and shoulder trigger?

A drop to or below $ 3,200 doesn’t necessarily drive ether into a full-blown bearish cycle. Conversely, it could trigger a bullish inverse head-and-shoulder setup.

The ETH / USD 4H price chart exhibits a potentially inverse head and shoulders pattern. Source: TradingView.com

If setup goes as intended, the accumulation of ETH tokens among traders should soar to near $ 3,200, triggering a jump towards the neck area in the graph above. In doing so, the ETH price targets its inverse head and shoulders to a length that corresponds to the maximum distance between the neckline and the lower edge of the pattern.

That would put Ether on its way to a new all-time high of around $ 4,500.

.

.

Coincu

Recent Posts

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

44 minutes ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

46 minutes ago

MicroStrategy Convertible Notes Now Out of Stock With $3B Raised

The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…

1 hour ago

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

4 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

7 hours ago

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

10 hours ago

This website uses cookies.