Ethereum onchain data and a bear pennant on the daily chart suggest that bears may target the $1,100 level. Would a dip to that zone represent a generational buy opportunity?
Ether (ETH) price printed a bear pennant on the daily chart, a technical chart formation associated with strong downward momentum. This weakening technical setup and declining network activity may signal the continuation of ETH’s bear trend and possibly send the altcoin’s price to $1,100.
The pennant will resolve once the price breaks below the lower trend line of the pennant at $1,950. If this happens, the ETH/USD pair could drop by as much as the previous downtrend’s height. This places the measured target for ETH price at $1,100, down 43% from the current price.
Ether’s price weakness is also reflected in its onchain activity, with Ethereum’s daily transaction count dropping to 1.95 million on Wednesday, down 33% from 2.9 million on Feb. 5.
Ethereum’s TVL has dropped to $54.5 billion on Wednesday from $70 billion at the beginning of the month, a decrease of over 22% in just over two weeks.
In addition, global Ethereum investment products saw a total of $85.1 million in net outflows between Feb. 9 and Feb. 13, adding to the price downtrend.
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