Ethereum's native token Ether (ETH) is at risk of falling below $3,200 in the coming sessions as its rally comes face-to-confront with a strong resistance zone.

In detail, the price of Ether swelled past almost 22% on a month-to-date timeframe in the wake of a market-wide price rally. That pushed the 2nd-largest cryptocurrency by market capitalization from under $3,000 to higher up $three,650 in the first eight days of October, triggering more bullish forecasts.

"Six g 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 $ten,000 upside target for Ether, likewise.

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

Two resistance zones and a rising wedge

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

ETH/USD 4H toll nautical chart featuring surly confluence. Source: TradingView.com

A rising wedge surfaced as ETH rallied and left backside a sequence of higher highs and lower lows. Meanwhile, the cryptocurrency's uptrend happened against decreasing volume, showing a lack of bullish conviction among traders.

Additionally, the structure's apex—the bespeak at which its two trendlines converge—is around two historical resistance zones. The first i is an interim resistance bar, every bit shown in the chart above, that previously called out ETH's top in a higher place $3,650.

At the aforementioned time, the second resistance is a descending trendline, visible more conspicuously in the daily chart below at around $3,800.

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

As a outcome, the rising wedge'southward noon and the two resistance trendlines pose bearish reversal risks to Ether. Should it happen, the Ethereum token will crash by as much every bit the maximum height between the wedge's upper and lower trendlines.

Related: 3 factors that tin can transport Ethereum price to 100% gains in Q4

That puts it en route to below $three,200, which served as an accumulation zone for Ethereum traders in the starting time half of September 2022.

Activating inverse caput and shoulder?

A drop towards or below $3,200 does not necessarily button Ether into a total-fledged surly cycle. Conversely, it could trigger a bullish changed caput and shoulder setup.

ETH/USD 4H price chart featuring a potential inverse caput and shoulders design. Source: TradingView.com

If the setup plays out as intended, traders' accumulation of ETH tokens will increment near $3,200, causing a rebound toward the neckline surface area in the chart higher up. In doing so, the ETH price would identify its changed caput and shoulder target at a length equal to the maximum altitude betwixt the pattern's neckline and bottom.

That would put Ether en road to new all-time highs of approximately $four,500.

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading movement involves risk, you should conduct your own research when making a determination.