Ethereum Forms Bearish Double Top as Price Remains Below Key Resistance
Ethereum is showing a long-term warning with a double top formation near $4,000, indicating strong resistance since 2021. Currently trading at approximately $2,424, it remains above a multi-year trendline from 2020 lows, with dynamic support around the 50-month EMA at $2,229. Traders are monitoring the neckline area at $2,130–$2,200 for potential breakdown signals.
Price Dynamics
- ETH is trapped in a symmetrical triangle.
- Recent rebound occurred at $2,220, but resistance is noted at $2,520.
- RSI is at 46; MACD shows no momentum shift.
- Bollinger Bands indicate low volatility before a breakout.
- A move above $2,525 could shift the trend bullish.
- Current range is between $2,200 and $2,870.
Liquidation data reveals $28.25 million in long liquidations versus $11.91 million in shorts, suggesting long-side leverage overheated around the $2,500 mark. Notably, Bybit led long liquidations at $8.37 million.
Market Sentiment
- Net outflows of $44.13 million from exchanges signal risk-off repositioning, not accumulation.
- Short-term bias remains neutral to bearish unless ETH reclaims $2,870 or stays above $2,300.
- Recent whale accumulation over $8.9 million pushed price back toward $2,400.
Traders are exploring diversification into self-custodial apps like Best Wallet, which supports multiple chains and has gained significant user attention.