Ethereum (ETH/USD) 30-Minute Chart Analysis – Double Top Pattern Formation
Pattern Formation and Price Behavior:
On the 30-minute timeframe, Ethereum (ETH/USD) has printed a Double Top pattern — a strong bearish reversal structure seen at the end of an uptrend.
The market initially surged, making higher highs and higher lows consistently until it hit a significant resistance zone around the $1795–$1800 level. Here, Top 1 was formed after an aggressive bullish impulse.
Following this first peak:
Price corrected downward but found notable support near $1715, confirming a key horizontal structure where buyers attempted to regain control.
This support acted as a neckline for the potential double top.
The market later staged another rally toward the resistance zone, and despite bullish efforts, failed to achieve a new high.
The second rejection at nearly the same price point created Top 2, validating the pattern.
Key Observations:
Repeated rejection at the same resistance shows buyer exhaustion.
Failure to make a higher high indicates a potential loss of bullish momentum.
Higher lows in between the tops suggest some residual bullish pressure, but the second failure is critical.
Support and Resistance Zones:
Resistance: 1795–1800 USD
(Validated twice with sharp rejection, forming two peaks)
Support (Neckline): 1715 USD
(Multiple touches and sideways movement confirming its importance)
The neckline is crucial:
A confirmed break below it would signal the full activation of the Double Top and likely trigger accelerated selling pressure.
Projected Price Action:
The trading projection after confirmation suggests:
Breakdown below support (neckline).
Short-term pullback/retest toward the broken support zone (~1715 USD) — this would act as a new resistance (Role Reversal principle).
Continuation move downward targeting the final measured move.
Final Target:
The approximate height between the resistance and the neckline (around 80–90 points) is projected downward from the breakout, giving a final target near $1679.6.
Trade Setup Details:
🔵 Entry:
After a successful breakout and retest of the neckline at $1715.
Look for bearish candlestick confirmations (e.g., bearish engulfing, pin bars with rejection wicks) on the retest.
🔵 Stop Loss:
Positioned safely above the prior resistance zone at $1860.9.
This level protects against fakeouts and unexpected bullish recoveries.
🔵 Take Profit (TP):
TP1: Minor support reaction zone around $1720.
TP2 (Final Target): Major move completion at $1679.6.
Risk and Trade Management:
Risk-Reward Ratio: Minimum 1:2 or higher recommended.
Position Sizing: Adjust according to account risk tolerance (e.g., 1–2% per trade).
Monitoring:
Watch for potential fake breakouts (false breakdown followed by quick recovery).
Be ready to adjust stops if early signs of bullish recovery are detected.
Event Risk:
Stay aware of broader crypto market conditions, Bitcoin (BTC) price movements, and potential news catalysts (e.g., economic data releases, Fed comments).
Broader Market Context:
ETH has been following Bitcoin's broader trajectory, with the entire crypto market slightly stalling after strong bullish impulses.
Given that ETH is still in a medium-term uptrend (on higher timeframes like 4H or Daily), the double top signals a potential short-term bearish correction rather than a full trend reversal — unless larger timeframe support zones are broken later.
This setup is particularly attractive for intraday to swing traders seeking short opportunities with clear invalidation and strong reward potential.
Conclusion:
Ethereum is showing clear signs of a potential bearish reversal on the 30-minute chart through a textbook Double Top formation.
A breakdown and retest of the $1715 neckline provide a high-probability setup to target $1679 and beyond.
Traders are advised to maintain disciplined execution, manage risks properly, and stay flexible if market conditions shift.
Pattern Formation and Price Behavior:
On the 30-minute timeframe, Ethereum (ETH/USD) has printed a Double Top pattern — a strong bearish reversal structure seen at the end of an uptrend.
The market initially surged, making higher highs and higher lows consistently until it hit a significant resistance zone around the $1795–$1800 level. Here, Top 1 was formed after an aggressive bullish impulse.
Following this first peak:
Price corrected downward but found notable support near $1715, confirming a key horizontal structure where buyers attempted to regain control.
This support acted as a neckline for the potential double top.
The market later staged another rally toward the resistance zone, and despite bullish efforts, failed to achieve a new high.
The second rejection at nearly the same price point created Top 2, validating the pattern.
Key Observations:
Repeated rejection at the same resistance shows buyer exhaustion.
Failure to make a higher high indicates a potential loss of bullish momentum.
Higher lows in between the tops suggest some residual bullish pressure, but the second failure is critical.
Support and Resistance Zones:
Resistance: 1795–1800 USD
(Validated twice with sharp rejection, forming two peaks)
Support (Neckline): 1715 USD
(Multiple touches and sideways movement confirming its importance)
The neckline is crucial:
A confirmed break below it would signal the full activation of the Double Top and likely trigger accelerated selling pressure.
Projected Price Action:
The trading projection after confirmation suggests:
Breakdown below support (neckline).
Short-term pullback/retest toward the broken support zone (~1715 USD) — this would act as a new resistance (Role Reversal principle).
Continuation move downward targeting the final measured move.
Final Target:
The approximate height between the resistance and the neckline (around 80–90 points) is projected downward from the breakout, giving a final target near $1679.6.
Trade Setup Details:
🔵 Entry:
After a successful breakout and retest of the neckline at $1715.
Look for bearish candlestick confirmations (e.g., bearish engulfing, pin bars with rejection wicks) on the retest.
🔵 Stop Loss:
Positioned safely above the prior resistance zone at $1860.9.
This level protects against fakeouts and unexpected bullish recoveries.
🔵 Take Profit (TP):
TP1: Minor support reaction zone around $1720.
TP2 (Final Target): Major move completion at $1679.6.
Risk and Trade Management:
Risk-Reward Ratio: Minimum 1:2 or higher recommended.
Position Sizing: Adjust according to account risk tolerance (e.g., 1–2% per trade).
Monitoring:
Watch for potential fake breakouts (false breakdown followed by quick recovery).
Be ready to adjust stops if early signs of bullish recovery are detected.
Event Risk:
Stay aware of broader crypto market conditions, Bitcoin (BTC) price movements, and potential news catalysts (e.g., economic data releases, Fed comments).
Broader Market Context:
ETH has been following Bitcoin's broader trajectory, with the entire crypto market slightly stalling after strong bullish impulses.
Given that ETH is still in a medium-term uptrend (on higher timeframes like 4H or Daily), the double top signals a potential short-term bearish correction rather than a full trend reversal — unless larger timeframe support zones are broken later.
This setup is particularly attractive for intraday to swing traders seeking short opportunities with clear invalidation and strong reward potential.
Conclusion:
Ethereum is showing clear signs of a potential bearish reversal on the 30-minute chart through a textbook Double Top formation.
A breakdown and retest of the $1715 neckline provide a high-probability setup to target $1679 and beyond.
Traders are advised to maintain disciplined execution, manage risks properly, and stay flexible if market conditions shift.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.