Ethereum is currently trading at a key level in the 4-hour timeframe. This $2,887 horizontal level has served as both support and resistance for the Ethereum price in the past and might continue to do so.

However, Ethereum is right now forming a very bearish pennant pattern at this key support level. This 15 minutes pennant pattern provides us key levels we can watch and take advantage of in the coming days.

In this ETH analysis, we will be talking about our bearish bias for Ethereum and the exact breakout we are waiting for in the coming days.

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ETH Pennant Pattern

The pennant pattern is a bearish price indicator that points to more weakness for the Ethereum price in the coming days. This pattern offers us key levels to watch for with our bearish confirmation being the price breakout to the downside.

That breakout is yet to happen for ETH as we see the Altcoin still trading sideways within the pennant pattern. However, there is a very high probability that this ranging market might end very soon!

If this bearish prediction plays out, we can expect to see the ETH price break to the downside and continue to trend lower in the coming days.

The Key Level To Watch

The key level to watch is the base channel of the pennant pattern in the 15 minutes timeframe. We want to see a clear price break below this level to confirm our bearish bias and the start of the Ethereum sell-off.

Until this bearish breakout occurs, Ethereum still has the potential to invalidate this bearish pattern and rally higher.

Bearish Target For ETH

For our bearish target, we are watching the $2,500 price region. This is the traditional target for the pennant pattern and a high-quality target for us.

But to confirm the start of the ETH sell-off back down to this $2,500 price region, we need to first see the Ethereum price clearly breakthrough that pennant pattern in the 15 minutes timeframe.

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