$ETH

Danger on Ethereum's radar

The bearish double-top pattern, which could indicate a reversal in Ethereum's recent bullish momentum, is just beginning to form on the cryptocurrency. ETH broke through important resistance levels following a powerful rally, but this pattern raises questions about a possible retracement that might impede its price recovery.

A substantial price decline is frequently preceded by the double-top pattern, which usually signals a loss of buying momentum. Ethereum has produced two peaks on the daily chart but has been unable to break through the $3,400 barrier.

The probability of ETH declining rises if it is unable to hold onto its present values. This worry is heightened by the fact that trading volume has begun to drop, indicating a decrease in market fervor. As the bullish momentum slows, the RSI, which is currently trending lower from the overbought area, lends credence to the idea that a correction may be imminent.

At $3,400, Ethereum is encountering significant opposition. If this level is broken, the double-top would be deemed invalid and additional gains toward $3,600 or higher might be possible. However, the 50 EMA acts as a buffer at $2,980, which is the immediate support level on the downside.

A decline below this level might lead to a more severe correction, which might drive ETH closer to the stronger support levels of $2,800 or even $2,750. The recovery that Ethereum has made over the past month could be undermined if the double-top formation materializes and causes a large retracement.