Technical analysis by Royalfxsignal about Symbol ETH: Sell recommendation (5/5/2025)

Technical Analysis: ETH/USD (30-Min Chart)Published: May 5, 2025By: RoyalFxSignal🔍 Chart OverviewThis 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 FormationPrice 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 & RetestAfter 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 ZonesResistance 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 SetupParameterValueEntry$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 ActionThe 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 NoteAlways 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.🧾 SummaryThis 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.