Ether 'bear pennant' puts target on $1.1K ETH price: Here’s why

A bear pennant is a technical analysis pattern that forms during a downtrend, consisting of a sharp price decline (the flagpole) followed by a consolidation phase where converging trendlines create a symmetrical triangle shape. The key difference from a bear flag is the shape of the consolidation: bear flags form rectangular or slightly upward-sloping channels with parallel lines, while bear pennants form symmetrical triangles where the upper and lower trendlines converge toward a single point. Both are continuation patterns that typically resolve in the direction of the prior downtrend, but pennants are considered more aggressive trading structures since traders often enter positions as soon as the upper diagonal line is broken, rather than waiting for a full breakout from a rectangular range.

Trading volume is critical for validating a bear pennant breakdown and confirming that the bearish continuation pattern is genuine. A valid breakdown requires a surge in selling volume to demonstrate strong conviction and sustained selling pressure. When volume remains flat or weak during a potential breakdown, it signals market indecision and suggests the move may not be confirmed. Analysts describe volume as a 'truth serum' for price action—a high-volume breakout shows strong conviction, while low-volume moves lack the participation needed to confirm the pattern's resolution. Without volume expansion accompanying a price break below support, traders cannot be confident that the downtrend will actually continue.