ETH Forms Double Top, Prices Could Tank to $500: Crypto Analyst

Crypto Analyst Profit Blue tweeted that Ethereum (ETH) was testing the neckline at $1,337 after forming double tops. ETH formed its first top at approximately $2,000 and the second top at approximately $1,650.

New lows soon
#Ethereum pic.twitter.com/vukgKKYBQm

— PROFIT BLUE (@profit8lue) January 11, 2023

Additionally, the analyst mentioned that ETH could reach new lows and marked $680 as the first support and $500 as the second support where ETH could tank if the bearish sentiment was to exist in the forthcoming days.

Ethereum has been on a roll when considering the seven-day chart below. ETH opened the market for the week, trading at $1,249. Although during the first three days of the past week, ETH was fluctuating lethargically, at times sneaking into the red zone. ETH finally gained momentum in the second half of the week.

ETH recorded $1,242 as its lowest price for the week. However, towards the beginning of the fifth day of the week, the bulls gave momentum to ETH. ETH surged from $1,270 to $1,310 within a few hours. As the bulls kept the pressure on, ETH kept reaching higher and reached $1,341, the highest price for the week.

Currently, the coin is up 0.70% in the last 24 hours and is trading at $1,333.12 as of press time.

ETH/USDT 7-day Trading Chart (Source: CoinMarketCap)

When considering the chart below, ETH formed double tops during the previous occasion (denoted in red). One of its double tops during the previous time was at approximately $4,600, while the other was at approximately $3,500, and its neckline was approximately at $2,550.

ETH/USDT 1W-Trading Chart (Source: TradingView )

The current double is formed approximately at $1,940 and $1,600, while the neckline is at $1,340. ETH is testing the neckline again. Interestingly, the 200-day MA is also very close to the neckline and is acting as the immediate resistance.

If the bulls push hard, ETH might be able to break the 200-day MA, the neckline, and move higher. Contrastingly, if the bears dominate, ETH could tank to $680 or $500, as denoted by Profit Blue.

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