Ethereum Retests 2nd Bearish Pennant, $1,000 Drop Back on the Table

Ethereum has been struggling to find stable ground after a sharp selloff, and now the daily chart is flashing another warning sign. Price has drifted back into a tightening consolidation range that mirrors a pattern which already played out once before, and the outcome of this retest could determine whether ETH sees a meaningful recovery or a much deeper drop toward four-digit lows.

ETH Hits a Key Technical Inflection Point

The chart tells a sequential story. The first bearish pennant formed after a steep drop, then resolved lower, with its measured target near $1,735 confirmed as “Target Reached.”

That completed leg reinforced the broader bearish structure on the ETHUSD daily view, where lower highs and compressed rebounds have followed the initial breakdown. As covered in Ethereum forming dual bearish pennants with $1,072 target in sight, repeated consolidation patterns can precede extended downside moves when trend momentum stays negative.

$1,000 Projection if the Second Pennant Breaks Down

ETH then consolidated again into Bearish Pennant #2, with converging trendlines trapping price roughly between the low-$2,000s and mid-$2,100s. If ETH fails to invalidate the formation, the projected continuation path points into the $1,000–$1,100 zone.

Compression phases don’t always mean recovery. As shown in the analysis of ETH stabilizing near $1,900 as volatility compresses, temporary squeezes can still resolve in the direction of the prevailing trend. Similarly, Ethereum breaking triangle structure as wave (4) resolves lower shows how continuation patterns on higher timeframes reinforce broader bearish momentum.

Until ETH stages a convincing break above pennant resistance, the path of least resistance remains to the downside, with $1,000 back in focus as the key risk level to watch.