When we last discussed the ETH-USD pair, the price was testing support in the mid $200 range.Since then, the market has dropped another 30% as ether tests the waters in the upper $190 range:Figure 1: ETH-USD, 1-Day Candles, Macro TrendThe volume on the current drop has been exceptionally high compared to the beginning of its descent from the $800s. However, one thing to note is how little the last few candles have progressed compared to the large amounts of sell volume accompanying the movement — and this actually makes sense on a basic level. Oftentimes, markets love nice round numbers (in our case, $200) and you can clearly see a line of historic support in the $200 range (shown by the red dashed line).However, something to keep in mind is this humongous bear pennant that ether recently broke out of:Figure 2: ETH-USD, 1-Day Candles, Bear PennantThis bear pennant has a staggering price target approximately in the $80–$100 range, meaning we are only halfway through its measured move. It should be noted that targets are just targets. Just because a pennant has a price target, that doesn’t mean the full move must be realized.Currently, the market is testing support on very high volume, which means there is a significant level of supply absorption. At this level, there are some eager bulls buying up the panic sellers. Whether or not their buying pressure will be enough to initiate a rally remains to be see...
