Ethereum Double Top Pattern Signals Extended Bearish Outlook

Popular crypto analyst Ali Martinez recently took to social media platform X to share concerning insights about Ethereum’s current technical setup. According to the market pundit, the second-largest cryptocurrency could be in for an extended bearish period over the next few weeks, primarily due to the potential formation of a ‘double top’ pattern on the 3-day timeframe of the Ethereum chart. This technical analysis pattern suggests a possible bearish trend reversal after an asset’s price touches a resistance level without breaking through.

The double top formation for Ethereum shows two distinct peaks separated by nearly four years. The initial top occurred around late 2021 during the altcoin season when the price of ETH rose to the then-all-time high of above $4,800. This price peak was followed by a market crash that saw Ethereum’s value drop to around the $1,000 mark by mid-2026. The purported second top of this setup is the current all-time high of $4,946, reached earlier in August 2025, creating what appears to be a mirror image of the 2021 peak.

The cryptocurrency market has not experienced its typical ‘Uptober’ performance this month, with most large-cap assets falling to new local lows in recent months. Ethereum, which was on the verge of hitting $5,000 just a few weeks ago, is now languishing below the $4,000 mark. According to data from CoinGecko, the altcoin’s value is currently more than 20% adrift from its August 2025 record high of $4,946.

As of this writing, the price of ETH stands at around $3,983, reflecting an almost 3% jump in the past 24 hours. While the ‘king of altcoins’ had a stop-start performance over the past week, its price seems to be in a slightly better position than it was seven days ago. However, this modest recovery does little to alleviate concerns about the broader bearish pattern that may be developing.

While the two tops look somewhat identical, the price action between them makes it tricky to definitively classify them as a ‘double top’ pattern. The pattern can only be confirmed when the price drops below the support level, which typically is the lowest point between the two peaks. For Ethereum, this critical support level would be at around $1,000 – a significant distance from the current price point of nearly $4,000.

The substantial gap between current prices and the potential confirmation level means traders and investors should approach this analysis with caution. However, the emergence of this pattern warrants close attention to Ethereum’s price movement over the coming weeks, as it could provide crucial insight into the cryptocurrency’s future trajectory. The current 20% decline from recent highs, combined with the failure to maintain typical October momentum, adds weight to the bearish outlook.

Market participants should monitor whether ETH can break above the $4,000 resistance level consistently or if it continues to show weakness that might validate the double top formation. The next few weeks of price action will be critical in determining whether this technical pattern becomes a self-fulfilling prophecy or merely a false signal in Ethereum’s long-term growth story.