- Ethereum price is grinding towards a reversal following the formation of a bearish pennant pattern.
- Ethereum bulls have a task to defend $190 support at all costs to avert possible losses to $150.
Ethereum price hit a wall at $200 following the impressive recovery from the recent support at $160. The struggle at $170 and $180 finally yielded in gains as the bulls aimed to pull above $200. However, penetrating this zone has become a hard nut to crack. Meanwhile, Ethereum is holding above the short term support at $190 and exchanging hands at $194.
Bearish Pennant Pattern Reversal
The daily chart clearly shows the formation of bearish pennant pattern. If Ether fails to sustain gains above the $200 level soon, there is a high chance that sellers will continue to gain traction. Price action below the pattern support will thrust ETH/USD into a breakdown, targeting the support zone at $150.
The Relative Strength Index (RSI) is not overbought yet but with downward motion following the resistance at 66 doubles down the increasing seller influence. At the same time, the 50 SMA is widening the gap below the 200-day, which signals an increasing bearish grip. Therefore, it is also essential that buyers defend $190 short term support at all cost to avert possible losses. If this reversal comes into play, former resistance zones at $180 and $170 will function as key support areas.
ETH/USD daily chart
Ethereum Intraday Key Levels
Spot rate: $194.53
Relative change: -2.28
Percentage change: -1.16%