ETHUSD - ETH is in the Support Red-Zone

Eth is now just holding above the most generous trendline that can be drawn (very tips of the candle wicks) and below the "best fit" trendline. I consider this area a red-zone as it is sitting above its very last bit of support. Failing to hold this level could trigger a sharp selloff.

I have marked the 2 most common scenario's that could play out. The bullish scenario is one where buying comes in and pushes price comfortable back above this trend-line zone and keeps the immediately bullish scenario alive. The bearish scenario is one where price breaks the pennant and then drops before buying comes back in to retest the bottom of the pennant. If the test were to fail then we could see a much larger and more prolonged selloff. There are of course other scenario's not marked on my chart that could play out. One is that the bottom falls out in price and then immediately v-reverses which would be an extremely bullish outcome. Another scenario is that the bottom falls out and price does not pull back to retest the pennant, which would be a very bearish outcome.

With no clear direction, and conflicting bullish and bearish signals, this is really a watch and wait market right now.