Ethereum risks fall below $3.2K as the ETH price encounters significant resistance.

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On Ethereum’s multi-timeframe charts, a convergence of at least three different bearish indicators appears, indicating that the current bull run may be coming to an end.

Ether (ETH), Ethereum’s native token, is at risk of falling below $3,200 in the coming sessions as its rally encounters a strong resistance zone.

In particular, the price of Ether has increased by nearly 22 percent month to date as a result of a market-wide price rally. This pushed the second-largest cryptocurrency by market capitalisation from under $3,000 to above $3,650 in the first eight days of October, sparking more bullish predictions.

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

But the price of Ether has the potential to ram into a confluence of three notable bearish indicators that could limit its upside moves and pare a portion of its recent gains.

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Two resistance zones and a rising wedge

The three bearish indicators that could prompt Ether to undergo a bearish reversal are a rising wedge, a descending trendline resistance, and an interim resistance bar, as shown in the chart below.

ETH/USD 4H price chart featuring bearish confluence. Source:

As ETH rallied, a rising wedge formed, leaving behind a series of higher highs and lower lows. Meanwhile, the cryptocurrency’s uptrend occurred against a backdrop of declining volume, indicating a lack of bullish conviction among traders.

Furthermore, the apex of the structure—the point at which its two trendlines converge—is located near two historical resistance zones.

The first is an interim resistance bar, as depicted in the chart above, which previously predicted ETH’s top above $3,650.

Simultaneously, the second resistance is a descending trendline, which can be seen more clearly in the daily chart below at around $3,800.


ETH/USD daily price chart showing the descending trendline resistance. Source:

As a result, the apex of the rising wedge and the two resistance trendlines represent bearish reversal risks for Ether. If this occurs, the Ethereum token will fall by the maximum height between the wedge’s upper and lower trendlines.

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This puts it on track to fall below $3,200, a level that served as an accumulation zone for Ethereum traders in the first half of September 2021.

Activating inverse head and shoulder?

A drop towards or below $3,200 does not necessarily push Ether into a full-fledged bearish cycle. Conversely, it could trigger a bullish inverse head and shoulder setup.

ETH/USD 4H price chart featuring a potential inverse head and shoulders pattern. Source:

If the setup works as planned, traders’ ETH token holdings will rise near $3,200, causing a rebound towards the neckline area in the chart above. As a result, the ETH price would set its inverse head and shoulder target at the maximum distance between the pattern’s neckline and bottom.

This would put Ether on track to new all-time highs of around $4,500.


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