Ethereum Rising Wedge Warns of ETH Price Drop Toward $1.6K

Ether (ETH), the native token of the Ethereum protocol, has jumped roughly 25% in the past month, but a classic technical setup shows potential price correction ahead.

Rising Wedge Raises ETH Odds of Falling Toward $1,600

ETH was trading near $1,890 on July 24, having recovered from its June low near $1,510. However, the rebound has developed between two ascending, converging trendlines, creating the rising wedge structure.

A rising wedge typically reflects weakening bullish momentum because price continues to form higher highs and higher lows within an increasingly narrow range.

The pattern confirms when the price closes below its lower trendline with stronger trading volume and falls by as much as the maximum distance between the lower and the upper trendline.

For Ether, the wedge support appears near $1,830–$1,850, overlapping with its 50-day exponential moving average (50-day EMA, red) at approximately $1,832. Losing this support could accelerate the sell-off toward $1,600–$1,605, representing a decline of around 15% from current prices.

ETH’s relative strength index (RSI) has also slipped below its moving average after approaching 60. The indicator remains above the neutral 50 level but suggests that upside momentum may be cooling.

Double-Bottom Setup Offers Bullish Alternative

The bearish wedge outlook competes with a larger double-bottom reversal pattern visible on the same daily chart.

Ether formed two comparable lows near $1,510 in June before recovering above the pattern’s neckline around $1,837. Holding above this level would keep the double-bottom structure active.

Traditional technical analysis calculates the pattern’s upside target by adding the distance between the neckline and the bottoms to the breakout point. That method projects an ETH price target near $2,186.

The target also coincides with Ether’s 200-day EMA near $2,188, making the area a potentially significant resistance zone.

Conversely, ETH faces stiff resistance in the 100-day EMA (purple) near $1,935.

Failing to break above this level risks invalidating the double-bottom outlook, instead raising the odds of the bearish wedge setup playing out as discussed above.