Key Insights:
- Ethereum forms a second bearish pennant, raising downside risk if price breaks below support.
- Traders warn ETH could fall toward $1,000 if selling pressure continues to build.
- Large ETH sales and weak structure keep market focus on key support zones.
Ethereum is showing signs of renewed downside risk as traders point to a second bearish pennant on the daily chart. This pattern appears during ongoing downtrends and often signals continued selling once price breaks lower.
The earlier bearish pennant formed during Ethereum’s recent decline and projected a move toward the $1,800 area. That target has already been reached. The current structure follows a similar setup, with price moving sideways after a sharp drop. Traders are now watching whether this formation resolves to the downside.
Downside Targets Shift Toward $1,000
Technical projections from the second pennant suggest a possible move toward the $1,100 to $1,200 range. Some market participants warn that price may extend lower if selling pressure accelerates. One analyst stated that “if this pattern fails to invalidate, there’s a straight way down to $1000.”
Source: Trader Tardigrade/XThe $1,820 to $1,900 area is acting as a short-term decision zone. Price has tested this range multiple times in recent sessions. A breakdown below this level, especially on strong volume, would confirm the pattern and open the door to lower prices. Until then, the market remains in a tight range.
Large ETH Sale Draws Market Attention
On-chain data shows that Ethereum Treasury Company, FG Nexus, sold more than $14 million worth of ETH during the latest trading session. Reports indicate the firm bought ETH near $3,860 and is now selling close to $1,900.
This move has raised “doubts” among traders about near-term confidence from larger holders. While individual transactions do not control market direction, such activity often adds pressure during already weak conditions. The sale comes as Ethereum trades near multi-month lows.
Macro Support Faces a Key Test
Longer-term charts show Ethereum nearing a historical support zone that was previously held during 2022 and 2023. This area has seen strong buying activity in the past and remains closely watched on higher timeframes.
Weekly analysis suggests Ethereum may be in the final stage of a broader corrective move. If price stabilizes near this level, it could signal selling exhaustion. A weekly close below this zone would increase “doubts” around near-term stability and expose Ethereum to deeper losses.
At the time of writing, Ethereum trades at $1,969.22. The asset has gained 8.53% over the past 24 hours, while posting a slight decline over the past seven days. Market participants continue to watch price behavior closely as Ethereum approaches critical levels.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Source: https://coincu.com/analysis/eth-warning-bearish-pattern-could-send/
