Ethereum (ETH/USD) 30-Minute Chart Analysis – Double Top Pattern

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.