Ethereum is looking to fall towards $200 after breaking a multi-week support level this Monday.
The price floor was a part of a Bear Flag pattern. In retrospect, Bear Flag appears as an asset consolidates in an upward channel following a robust directional move down. The price eventually breaks below the Channel’s lower trendline, a move that signals extension/continuation to the existing bearish bias.
ETH/USD broke below its Bear Flag support on Monday. The pair suffered two days of selling sentiment, falling more than 6 percent as traders failed to break above a crucial technical resistance level of $375.
Ethereum breaks out of a Bear Flag pattern to signal further downside moves. Source: TradingView.com
ETH/USD is now testing the intermediary downside target (dashed green; $350) of the same Bear Flag for a sharp pullback. It, nevertheless, risked breaking further to the downside, with immediate short targets lurking insides the $323-310 range.
The entire bottom area between $310 and $350 served as an accumulation range for traders, according to Ethereum’s recent price behaviors. The purple bar in the chart above shows ETH/USD undergoing sharp rebounds.