Mapping the Market: Ether may be on the precipice of more losses

Cryptocurrency Ethereum has ​failed to recover from sharp ​losses it suffered earlier ‌this year, ​and is currently trading close to price levels that could pave the way to further ‌losses. Ether has fallen 29% this year. Recent price action has created what technical analysts refer to as a bearish pennant pattern. This pattern follows a ‌string of losses, with prices consolidating - not moving much up or ‌down - before resuming the original downward trend.

The pennant is a triangle-shaped pattern where prices consolidate, and currently ether is trading along the lower boundary of that formation near $2,130, ⁠according ​to data provided by ⁠LSEG. A decisive break beneath this lower boundary would raise expectations that ether could ⁠fall to the $800-900 area.

However, a decisive break above the upper boundary of ​the pennant - currently just above $2,460 - would diminish the bearish risks and raise ⁠expectations of a further rise. What the chart shows:

* Ethereum suffered a sharp fall ⁠early ​this year * It has been consolidating in a triangle-shaped pennant pattern

* A decisive fall below the bottom of the formation ⁠could raise expectations of a slide toward the $800-900 area (Daily markets commentary from Reuters ⁠analysts on ⁠the signals financial charts are sending - and what they might mean.)

(Christopher Romano is a Reuters market analyst. The ‌views expressed are ‌his own; Editing by Burton ​Frierson and Nia Williams)

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