On Ethereum multi-timeframe charts, a cluster of at least three separate negative signs shows, implying that the bull run may be coming to an end.
The native cryptocurrency of Ethereum (ETH), is in danger of dropping below $3,200 in the next sessions as its rise runs into a significant resistance zone.
In the aftermath of a market-wide price surge, the price of Ether soared by over 22% on a month-to-date basis. In the first eight days of October, this lifted the second-largest cryptocurrency by market value from around $3,000 to nearly $3,650, prompting further positive projections.
However, the price of Ether has the potential to collide with a trio of major negative signs, limiting its upside movements and wiping out some of its recent gains.
A rising wedge, a declining trendline resistance, and an intermediate resistance bar, as seen in the chart below, are three negative signs that might cause Ether to experience a bearish reversal.
Source – Tradingview
As ETH rallied, a rising wedge formed, leaving a series of higher highs and lower lows in its wake. Meanwhile, the cryptocurrency’s upward trajectory coincided with a drop in volume, indicating a lack of optimistic conviction among traders.
Furthermore, the pinnacle of the structure—the point where its two trendlines converge—is located near two previous resistance zones. The first, as seen in the chart above, is an intermediate resistance bar that earlier identified ETH’s peak above $3,650.
Around the same time, the second barrier is a falling trendline at about $3,800, which may be seen more clearly in the daily chart below.
Source – Tradingview
As a result, the apex of the rising wedge and two resistance trendlines represent bearish reversal risks for Ether. If this occurs, the Ethereum token will plummet to the maximum height between the wedge’s top and lower trendlines.
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