The ETH-to-dollar dropped to $235.44 on Coinbase as on May 30, 2100, UTC after rallying for five weeks consecutively. The pair attempted a small pullback from its newfound intraday low, but could not extend it to cover the intraday losses. The price action, overall, appeared weak, indicating that Ethereum could continue its plunge to test new downside targets.
ETHEREUM PRICE BACK IN BULL PENNANT | SOURCE: TRADINGVIEW.COM, COINBASE
Ahead of the correction, the Ethereum price established its year-to-date peak at $288.77 on Coinbase. However, the level experienced a huge selling sentiment, probably due to day traders that might have exited their long positions to squeeze out a decent intraday profit. The price, therefore, came back to its prevalent bull pennant, as shown in the chart above.
Exploring the Bull Pennant
Bull pennant breakout scenario: TRADINGVIEW.COM, COINBASE
The Ethereum price fluctuated between a bull pennant formation ahead of testing $288.77-high. The price surge appeared like a breakout action which, according to the textbook definition of a bull pennant, could have pushed Ethereum as high as the height of the pennant’s flagpole. In the chart above, that height is about $135-long.
But, as one can notice, the breakout turned out to be a fakeout. The Ethereum price came back inside the same bull pennant structure, indicating that it plans to continue its fluctuations inside the range. Ideally, the price should pursue the direction of its previous trend, which is bullish in Ethereum’s case. Also, the next breakout to the upside, if accompanied by a rise in volume, should take the Ethereum price at least $135 higher. That could bring the ETH-to-dollar exchange rate close to $400.