Ethereum Rising Wedge Pattern Sparks 15% Correction Warning
Ethereum's recent price action has created a rising wedge pattern on its daily charts, which often precedes a sharp correction. Analysts warn that if support around $1,830-$1,850 fails, Ether could plummet toward $1,600, representing a potential 15% drop.
The rising wedge formed as Ethereum carved higher highs and higher lows between two ascending trendlines, initially suggesting bullish momentum. However, the narrowing range indicates fading buying pressure, making it a bearish setup. The pattern is confirmed once price closes below the lower trendline accompanied by stronger-than-average trading volume.
A competing bullish structure, a double-bottom reversal, is also visible on the same daily chart, projecting an upside target near $2,186, which aligns closely with Ethereum's 200-day EMA at approximately $2,188. This convergence makes the $2,186 to $2,188 zone a potentially significant resistance area.
Despite the bearish technical picture, on-chain data suggests improving investor conviction and diminishing near-term selling pressure. The Exchange Supply Ratio has continued to grind lower, indicating that coins are migrating from exchanges to private wallets or long-term storage, reducing immediately available sell-side liquidity.