Ethereum Faces Critical Test as Bearish Double Top Pattern Threatens Rally

Ethereum’s recent price action has raised concerns among traders as a classic bearish reversal pattern forms on the daily chart. After twice failing to break through the $2,700 resistance level with conviction, ETH now hovers NEAR a crucial technical support level that could determine its near-term trajectory. The emergence of this technical pattern, combined with weakening momentum indicators, suggests the cryptocurrency’s rally may be losing steam at a pivotal moment in market conditions.

Ethereum Shows Bearish Signals as Double Top Pattern Forms

Ethereum’s recent rally faces sustainability concerns as a double top pattern emerges on the daily chart. The cryptocurrency tested resistance near $2,700 twice but failed to break higher with strong volume, now hovering around $2,475 near the critical 200-day EMA.

A breach of the $2,400 neckline could confirm the bearish reversal. Momentum indicators reflect weakening bullish strength, with the RSI dropping from overbought levels above 70 to 58.9. Declining trading volume since early May further supports the cautious outlook.

Ethereum Price Finds Its Footing: Bulls Prepare for Another Push

Ethereum has established a solid support level at $2,460, signaling a potential resurgence. The cryptocurrency is now eyeing a breakthrough above the $2,600 resistance zone, with momentum building as it trades above $2,520 and the 100-hourly Simple Moving Average.

A key technical development was the breach of a bearish trend line at $2,540 on the ETH/USD hourly chart, data from Kraken shows. This upward movement follows Bitcoin’s rally to a new all-time high, which initially propelled ETH to test $2,720 before a corrective dip to $2,450.

The recovery from $2,463 demonstrates renewed bullish conviction. Market participants are now watching for a decisive close above $2,600, which could open the path for further gains.

Ether Struggles to Hold Above $2,700 as Resistance Looms

Ethereum’s price rally has hit a snag near the $2,700 mark, with repeated rejections signaling strong resistance. Despite a bullish recovery from Q1 lows, ETH faces downward pressure each time it approaches this critical level.

Blockchain analytics firm Glassnode identifies $2,800 as the next significant threshold, suggesting that breaking through current resistance could pave the way for further gains. The altcoin’s inability to sustain momentum above $2,700 reflects ongoing market uncertainty and profit-taking behavior among traders.

Ethereum Retreats After $2.7K Rally as Sell-Side Pressure Intensifies

Ether’s rally to $2,700 proved short-lived as the asset faced stiff resistance, tumbling 3.05% to $2,476 within 24 hours. The pullback reflects growing bearish conviction across markets, with spot transactions showing 113,100 ETH sold versus just 90,000 ETH bought.

CryptoQuant data reveals a sharp decline in the 14-day moving average of the Taker Buy-Sell Ratio, signaling aggressive sell orders overwhelming demand. This technical rejection comes amid broader market uncertainty, with traders closely watching the $2,463 support level.

Base’s Ambitious Upgrade Plan Challenges Ethereum’s Scalability Dominance

Base, the Coinbase-backed LAYER 2 network, is making waves with its aggressive performance roadmap. Total value locked (TVL) has surged to $4 billion, signaling renewed confidence as the platform targets sub-200 millisecond transaction confirmations, sub-cent fees, and 200 transactions per second throughput.

The upgrades position Base as a formidable challenger to Ethereum’s scalability limitations. Jesse Pollak’s recent communications outline a clear decentralization strategy for Base’s infrastructure on ethereum mainnet—a move that could redefine the Layer 2 competitive landscape.

While Ethereum struggles with congestion, Base’s technical improvements and Coinbase’s institutional backing create a compelling value proposition. The network’s trajectory suggests it’s evolving from fast follower to potential market leader in the race for Layer 2 supremacy.