Technical Analysis: ETH/USD (30-Min Chart)
Published: May 5, 2025
By: RoyalFxSignal
🔍 Chart Overview
This ETH/USD chart highlights a textbook Double Top pattern, a bearish reversal signal following a strong prior uptrend. The market structure, support/resistance levels, and price action behavior all align to present a high-probability short (sell) trading setup.
🧩 Pattern Breakdown
🔸 1. Initial Uptrend & Top Formation
Price action showed a strong bullish rally, culminating in a first peak (Top 1) around $1,915.
After a corrective dip, buyers attempted to push price higher again, but failed to break the previous high, forming Top 2, also near $1,915.
This creates the Double Top pattern, a classic sign of bullish exhaustion and potential reversal.
🔸 2. Neckline (Support Zone)
The horizontal support (neckline) is drawn around $1,790–$1,800, where price found support multiple times in the past.
Once this neckline was broken with strong bearish momentum, the pattern was confirmed.
🔸 3. Break & Retest
After the breakdown, price retraced back to retest the neckline zone, which now acted as resistance (a common behavior in technical analysis).
A rejection from this area reinforced the bearish sentiment, providing a textbook short entry point.
📌 Key Technical Zones
Resistance Zone: $1,820–$1,840 (former support, now flipped to resistance)
Support Zone: $1,790–$1,800 (neckline and zone of prior demand)
Target Support Level: $1,759.2 (measured move target based on Double Top height projection)
🎯 Trade Setup
Parameter Value
Entry $1,820–$1,830 (after retest rejection)
Stop Loss (SL) $1,840.4 (above resistance and structure)
Take Profit 1 (TP) $1,790 (minor support)
Final Target (TP2) $1,759.2 (major support based on pattern projection)
This setup gives a favorable risk-reward ratio, adhering to solid technical principles.
🔄 Market Sentiment & Price Action
The price structure suggests bearish momentum is now in control after bulls failed to establish a higher high. Sellers are likely to remain active below the $1,830 resistance zone. The continuation move lower aligns with the broader reversal suggested by the Double Top and break/retest behavior.
⚠️ Risk Management Note
Always ensure proper risk management:
Avoid overleveraging.
Wait for confirmation (e.g., bearish candle rejection on retest).
Respect your stop loss even if the market becomes choppy.
🧾 Summary
This chart illustrates an ideal bearish trading setup based on the Double Top pattern and subsequent market structure break. The retest of broken support provided a clean entry for short positions. With clearly defined SL and TP levels, this setup is both technically sound and risk-conscious.
Published: May 5, 2025
By: RoyalFxSignal
🔍 Chart Overview
This ETH/USD chart highlights a textbook Double Top pattern, a bearish reversal signal following a strong prior uptrend. The market structure, support/resistance levels, and price action behavior all align to present a high-probability short (sell) trading setup.
🧩 Pattern Breakdown
🔸 1. Initial Uptrend & Top Formation
Price action showed a strong bullish rally, culminating in a first peak (Top 1) around $1,915.
After a corrective dip, buyers attempted to push price higher again, but failed to break the previous high, forming Top 2, also near $1,915.
This creates the Double Top pattern, a classic sign of bullish exhaustion and potential reversal.
🔸 2. Neckline (Support Zone)
The horizontal support (neckline) is drawn around $1,790–$1,800, where price found support multiple times in the past.
Once this neckline was broken with strong bearish momentum, the pattern was confirmed.
🔸 3. Break & Retest
After the breakdown, price retraced back to retest the neckline zone, which now acted as resistance (a common behavior in technical analysis).
A rejection from this area reinforced the bearish sentiment, providing a textbook short entry point.
📌 Key Technical Zones
Resistance Zone: $1,820–$1,840 (former support, now flipped to resistance)
Support Zone: $1,790–$1,800 (neckline and zone of prior demand)
Target Support Level: $1,759.2 (measured move target based on Double Top height projection)
🎯 Trade Setup
Parameter Value
Entry $1,820–$1,830 (after retest rejection)
Stop Loss (SL) $1,840.4 (above resistance and structure)
Take Profit 1 (TP) $1,790 (minor support)
Final Target (TP2) $1,759.2 (major support based on pattern projection)
This setup gives a favorable risk-reward ratio, adhering to solid technical principles.
🔄 Market Sentiment & Price Action
The price structure suggests bearish momentum is now in control after bulls failed to establish a higher high. Sellers are likely to remain active below the $1,830 resistance zone. The continuation move lower aligns with the broader reversal suggested by the Double Top and break/retest behavior.
⚠️ Risk Management Note
Always ensure proper risk management:
Avoid overleveraging.
Wait for confirmation (e.g., bearish candle rejection on retest).
Respect your stop loss even if the market becomes choppy.
🧾 Summary
This chart illustrates an ideal bearish trading setup based on the Double Top pattern and subsequent market structure break. The retest of broken support provided a clean entry for short positions. With clearly defined SL and TP levels, this setup is both technically sound and risk-conscious.
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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.