Ethereum’s (ETH) recent price action has caught the attention of traders and analysts alike. Technical indicators suggest that Ethereum has formed a “double top” pattern, a bearish signal that could lead to a 42% price drop. This development raises concerns about whether the ETH bull market is coming to an end.
Ethereum Price Trends and the “Double Top” Pattern
On March 4, 2025, Ethereum’s price dropped to a yearly low of $1,996, marking its lowest point since November 2023. Over $100 million in ETH positions were liquidated, and open interest in ETH futures declined by 10.31%.
Technical analysts have identified a “double top” pattern on Ethereum’s weekly and monthly charts, a classic bearish reversal indicator. Based on this formation, ETH’s projected downside target could be around $1,200, reflecting a potential 42% drop from its current price levels.
Investor Sentiment and Market Reaction
Ethereum’s sharp decline has significantly impacted investor sentiment. Data shows that out of 36.92 million ETH-holding addresses, only 26% are currently in profit, while 70% are at a loss, and 4.46% are at breakeven.
This suggests that the recent price drop has pushed the majority of investors into negative territory, contributing to a more bearish market outlook.
Technical Indicators and Future Price Movements
From a technical perspective, Ethereum’s price has broken below a 980-day-long ascending trendline dating back to June 2022, indicating that its long-term uptrend may be weakening. Additionally, the Relative Strength Index (RSI) has fallen to multi-year lows, reinforcing bearish momentum.
However, an oversold RSI could also indicate a potential short-term rebound. Notably, in the past 24 hours, Ethereum’s price surged by 12% from $1,996 to above $2,242, suggesting strong short-term buying pressure despite the overall bearish outlook.
Conclusion: Navigating Ethereum’s Market Uncertainty
In summary, Ethereum’s “double top” pattern and bearish technical indicators suggest increased downside risks. Investors should remain cautious and closely monitor technical signals and market sentiment to develop strategic responses to potential price volatility.
