Ethereum faces technical crossroads as rising wedge clashes with double-bottom pattern
Conflicting chart signals leave the native token of the Ethereum protocol poised for a potential 15% correction or a breakout toward $2,186, depending on key support levels.
Ethereum (ETH) is navigating a period of technical uncertainty, trading near $1,890 following a significant 25% price increase over the preceding month. The asset has recovered from a low of approximately $1,510 in June, but analysts at FX Empire note that the current price action is caught between two opposing technical formations. This divergence has left traders weighing the likelihood of a sharp pullback against the potential for a sustained rally.
The bearish case centres on a rising wedge pattern, characterised by ascending and converging trendlines that typically indicate weakening bullish momentum. For this pattern to confirm a downside move, Ethereum must close below its lower trendline, with support identified in the $1,830–$1,850 range. This zone overlaps with the 50-day exponential moving average (EMA) at approximately $1,832. A breakdown below this support could trigger a correction of around 15%, targeting the $1,600–$1,605 level.
Compounding the bearish outlook, the Relative Strength Index (RSI) has slipped below its moving average after approaching the 60 mark. Although the indicator remains above the neutral 50 level, the decline suggests that upside momentum is cooling. This technical weakness aligns with the rising wedge structure, raising the probability that the asset could retrace its recent gains if immediate support fails to hold.
Conversely, a bullish double-bottom reversal pattern offers an alternative scenario. Ethereum formed two comparable lows near $1,510 in June before recovering above the pattern’s neckline at approximately $1,837. Holding above this level is critical for maintaining the bullish structure. If Ethereum clears resistance near $1,837 and breaks through the 100-day EMA at $1,935, the pattern projects an upside target of $2,186.
That bullish target coincides closely with the 200-day EMA near $2,188, which may act as significant resistance. However, the path to that level is obstructed by the 100-day EMA at $1,935. Failure to break above this intermediate resistance could invalidate the double-bottom outlook, thereby increasing the odds that the bearish rising wedge setup will play out as the dominant market narrative.
