Ethereum price has set up three higher highs and three lower lows since June 23. Connecting these swing points using trend lines reveals a rising wedge formation.
This technical pattern forecasts a 16% downswing to $1,909, determined by measuring the distance between the first swing high and low and adding it to the breakout point at $2,271.
However, the 16% crash could be cut short at the demand zone that ranges from $2,024 to $2,106. Therefore, investors can expect ETH to bounce from this area to shatter the midpoint of the range at $2,320.
If this were to happen, Ethereum price could further rally 25% to tag the range high at $2,912 after slicing through the intermediate barriers at $2,460 and $2,640.
If the selling pressure builds up enough to slice through the demand zone extending from $2,024 to $2,106, ETH will likely head to the intended target at $1,909.
In a highly bearish case, Ethereum price might end up sweeping the range low at $1,728. If the smart contract token fails to climb above $1,728, it will invalidate the bullish thesis.
