Ethereum Forms Double Top Pattern, Signaling Continued Decline Rather Than Rebound

▲ Ethereum (ETH) Decline / AI-Generated Image

Ethereum (ETH) has entered an extremely vulnerable technical phase, forming a double-top pattern on short-term charts and threatening the psychological support level of $2,000.

According to cryptocurrency media outlet U.Today on February 16 (local time), Ethereum is displaying a minor double-top pattern on lower time frames, exposing short-term technical weakness. Despite repeated attempts to stabilize the price, downside risks remain elevated. This development follows a sharp decline from above $3,000 to the $2,000 range.

Ethereum recently attempted to rebound above the $2,100 level twice, but both efforts failed to maintain upward momentum, completing the minor double-top formation. The repeated rejection at major resistance zones suggests weakening buying pressure. Such a pattern emerging after a large downtrend is generally interpreted as a signal of continued bearish momentum rather than a trend reversal.

Market tension is now centered on the psychological threshold of $2,000. This support level lies just below the current price, and its defensive strength appears to be gradually weakening after multiple tests. A decisive breakdown below $2,000 could trigger cascading liquidations and panic selling, potentially driving prices down to the $1,800–$1,700 range, where strong demand previously emerged.

Technical indicators show that bearish momentum remains in control of the trend. Ethereum is trading below key moving averages, and the downward slope of these averages reinforces that sellers are dominating the market. The current relief rallies are viewed not as the beginning of a genuine recovery, but rather as temporary technical corrections within a broader downtrend.

The formation of the double-top pattern also raises the likelihood of unexpected short-term volatility. As rebound attempts fail, investors who entered positions late may find themselves trapped near local highs, triggering concentrated stop-loss orders and sharp price swings. For now, investors are advised to prepare for irregular price movements rather than a stable uptrend and closely monitor the market’s direction.

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