Ethereum’s native token Ether (ETH) is vulnerable to falling under $3,200 within the coming periods as its rally comes face-to-face with a robust resistance zone.

Intimately, the price of Ether swelled by almost 22% on a month-to-date timeframe in the wake of a market-wide price rally. That pushed the second-largest cryptocurrency by market capitalization from under $3,000 to above $3,650 in the first eight days of October, triggering more bullish forecasts.

“Six thousand dollars will happen fast; $10,000 is programmed,” noted Twitter-based technical chartist Crypto Cactus. David Gokhshtein, CEO of distributed information community PAC Protocol, predicted a $10,000 upside goal for Ether, as effectively.

However the value of Ether has the potential to ram right into a confluence of three notable bearish indicators that might restrict its upside strikes and pare a portion of its latest features.

Two resistance zones and a rising wedge

The three bearish indicators that might immediate Ether to endure a bearish reversal are a rising wedge, a descending trendline resistance, and an interim resistance bar, as proven within the chart under.

ETH/USD 4H value chart that includes bearish confluence. Supply:

A rising wedge surfaced as ETH rallied and left behind a sequence of upper highs and decrease lows. In the meantime, the cryptocurrency’s uptrend occurred in opposition to lowering quantity, exhibiting an absence of bullish conviction amongst merchants. 

Moreover, the construction’s apex—the purpose at which its two trendlines converge—is round two historic resistance zones. The primary one is an interim resistance bar, as proven within the chart above, that beforehand known as out ETH’s top above $3,650.

On the similar time, the second resistance is a descending trendline, seen extra clearly within the each day chart under at round $3,800.

ETH/USD each day value chart exhibiting the descending trendline resistance. Supply:

In consequence, the rising wedge’s apex and the 2 resistance trendlines pose bearish reversal dangers to Ether. Ought to it occur, the Ethereum token will crash by as a lot as the utmost peak between the wedge’s higher and decrease trendlines.

Associated: 3 factors that can send Ethereum price to 100% gains in Q4

That places it en path to under $3,200, which served as an accumulation zone for Ethereum traders within the first half of September 2021.

Activating inverse head and shoulder?

A drop in the direction of or under $3,200 doesn’t essentially push Ether right into a full-fledged bearish cycle. Conversely, it might set off a bullish inverse head and shoulder setup.

ETH/USD 4H value chart that includes a possible inverse head and shoulders sample. Supply:

If the setup performs out as meant, merchants’ accumulation of ETH tokens will enhance close to $3,200, causing a rebound toward the neckline area in the chart above. In doing so, the ETH price would place its inverse head and shoulder target at a length equal to the maximum distance between the pattern’s neckline and bottom.

That would put Ether en route to new all-time highs of approximately $4,500.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.