CRYPTO

Ethereum risk falls below $ 3.2K as ETH price faces heavy resistance


Etherium’s native token Ether (ETH) is at risk of falling below, 3,200 in the upcoming session as its rally rally faces a strong resistance zone.

In detail, the price of ether has risen by about 22% A month-to-date date in the context of a market-wide price rally. This pushed the market capitalization from below 3,000 3,000 to above 6 3,650 in the first eight days of October, the second-largest cryptocurrency, triggering a more bullish forecast.

“Six thousand dollars will happen fast; $ 10,000 is programmed,” Note Twitter-based technical chartist Crypto Cactus. David Gochstein, chief executive of the distributed data network PAC protocol, also predicted an upward target of ১০ 10,000 for ether.

But the price of ether has the potential to enter into a combination of three significant bearish indicators that may limit its side-upward move and bear a portion of its recent gains.

Two resistance zones and a rising wedge

The three bearish indicators that could induce Ether to be a bearish reversal are a rising wedge, a landing trendline resistance and an intermediate resistance bar, which are shown in the chart below.

ETH / USD 4H Price Chart Bearish Confluence. Source: TradingView.com

A rising wedge ETH became rallied and left behind a series of highs and lows. Meanwhile, the rise of cryptocurrencies has taken place in contrast to the amount of decline, which shows a lack of bullish confidence among traders.

In addition, the top of the structure – the point at which its two trendlines converge – is almost two historical resistance zones. The first is an interim resistance bar, as shown in the chart above, which previously called the top of the ETH above $ 3,650.

At the same time, a landing trend of second resistance, more clearly visible at $ 3,800 on the daily chart below.

ETH / USD daily price chart shows low trendline resistance. Source: TradingView.com

As a result, the top of the rising wedge and the two-resistance trendline create bearish reversal risk for Ether. If this happens, the Ethereum Token Wage will crash like the highest in the upper and lower trends.

Related: 3 things that could send Ethereum prices for 100% profit in Q4

That brings it down to 3,200, which serves as one Storage zone for Ethereum traders in the first half of September 2021.

Reverse head and shoulder active?

3,, falling to ২০০ 200 or below does not push the ether into a full bearish cycle. Conversely, it could trigger a bullish inverse head and shoulder setup.

The ETH / USD 4H price chart features a potentially opposite head and shoulder pattern. Source: TradingView.com

If the setup works as intended, ETH token traders’ deposits will increase to around $ 3,200, leading to a return to the neckline. Area in the chart above. In doing so, the ETH value will place its opposite head and shoulder target at a length equal to the maximum distance of the neckline and bottom of the pattern.

This will take Ether to a new all-time high of approximately ,500 4,500.

The opinions and opinions expressed here do not necessarily reflect the views of the author and Cointelegraph.com. With every investment and trading move involving risk, you should conduct your own research when making decisions.