The price of Ethereum is currently in a rising wedge formation, indicating a small retracement.
Before ETH rallies 40% to $3,000, a correction to $2,106 is likely.
The bullish view will be invalidated if the June 27 swing low of $1,804 is surpassed.
The price of Ethereum is now trading inside a bearish pattern, which if broken might propel the altcoin into a demand zone. Investors should expect ETH to rally around this region, with the range high likely to be retested if the conditions are ideal.
The price of Ethereum is currently attempting to break over the 50% Fibonacci retracement barrier at $2,360. ETH, on the other hand, has made three higher highs and three lower lows since June 23, forming a rising wedge when the swing points are joined using trend lines.
If ETH breaks through the lower trend line at $2,271, this pattern has a bearish bias and predicts a 16 percent drop. The $1,909 goal is calculated by adding the distance between the first swing high and low to the breakout point of $2,271.
Investors should take note of the demand zone, which runs from $2,041 to $2,106, as this area of support might prevent the sell-off from the rising wedge pattern and kick-start the uptrend prematurely.
If this occurs, Etheruem is anticipated to rally 12% before hitting the range’s midpoint at $2,360, which it would smash, opening the way to the immediate supply barriers at $2,460 and $2,640.
In a strongly optimistic scenario, purchasing pressure might push the smart contract token to the range high of $2,992 or the psychological level of $3,000, respectively.
While a pullback followed by a rally appears likely, market traders should keep in mind that the rally could occur without a correction. In that situation, the upside goals will remain the same.
4-hour chart of ETH/USDT
If the demand zone, which stretches from $2,041 to $2,106, is breached, the $1,909 theoretical target defined by the rising wedge might be tagged.
However, if the June 27 swing low at $1,804 is broken, a lower high will be established, potentially invalidating the bullish thesis. A sell-off to the range low of $1,729 could result from such a move./n
