Ethereum price analysis: pennant bodes no good for ETH/USD

ETH/USD is changing hands at $89.50. The coin is mostly unchanged on a day-to-day basis and down 1.1% since the beginning of Thursday. The third largest coin with a market capitalization of $9.3B stays in the range amid low trading activity. Currently market tends to ignore coin-specific major news, which means that altcoins move in sync with Bitcoin.

Ethereum's technical picture

On the 4-hour chart, pennant formation implies the continuation of the bearish trend, at least within the short-term timeframe. It is worth noting, that the price is consolidating with the bearish bias after a failed attempt to settle above $90.00 handle. Both the Relative Strength Index (RSI) and Momentum indicator point to the downside and confirm the bearish case. The local support comes at $84.30. It is created by the lower line of the above-said pennant. This area may cool down the bearish fever; however, once it is cleared, the sell-off may gain traction with the next aim at the recent low of $82.15. A sustainable movement lower will take ETH to the longer-term support area $60.00 and $50.00.

On the upside, the recovery is capped by SMA50 (4-hour) at $93.30 and by psychological $94.00, which coincides with the upper border of the pennant. A bullish breakthrough of the pennant will trigger a strong recovery with the first goal at $100.00 and the ultimate short-term target seen at $110.00 

ETH/USD, 4-hour chart