That structure usually signals a pause inside a larger downtrend, not a full reversal.

ETH also remains below its 20-, 50-, and 200-period EMAs, showing that sellers still control the broader trend. The 20-EMA near $1,653 is acting as immediate resistance, while the 50-EMA near $1,718 adds another ceiling above it.

A decisive four-hour close below the pennant’s lower trendline could confirm the bearish continuation setup. Based on the flagpole height, the measured downside target sits near $1,250.

Bulls need to reclaim $1,680–$1,720 to weaken this bearish setup.

The bearish setup is forming as renewed US-Iran hostilities keep traders defensive.

Asian stocks fell while oil prices rose after Iran and the US exchanged strikes, with Brent trading above $92 and WTI near $88.70. The move shows markets are still pricing geopolitical risk through higher energy prices and weaker risk appetite.