Today’s Ethereum price chart may suggest the formation of a bearish pattern called the “double top”. 100k ETH likewise streamed into Binance.
Ethereum Price Chart Shows Famous “Double Top” Bearish Formation
As explained by a CryptoQuant post, the cryptocurrency formed a bearish pattern on the price chart earlier today, and at about the same time, Binance also noticed a netflow of around 100k ETH.
Here is a Ethereum chart that plainly reveals the bearish pattern:
As the above chart shows, Ethereum seems to have formed what’s popularly known as the “double top” pattern. Historically, development of such peaks has actually been a bearish signal.
However, a double top can’t be confirmed until the price drops below the support level marked by the dip between the two peaks.
The above chart was really published by the expert a couple of hours earlier. A more recent version of the chart looks something like this:
It appears like right after forming the 2 peaks, the cost appears to have actually crashed down to $3.2k, which is listed below the 3.3k assistance level.
In most cases, such a dip confirms that the formation is a bearish double top. However, here the cost appears to currently be returning up the assistance level.
Following a double top event, the support level becomes resistance so that the price stays below it for a while. It’s possible it might simply be a shoulder development, which the bearish pattern may still be active.
Though the opposite could also be true; the price might keep going back up instead. However, another bearish signal likewise went off…
About 100k ETH Flows Into Binance
Around the same time that the two peaks formed, the netflow indicator for Ethereum showed that about 100k ETH flowed into the crypto exchange Binance.
The “netflow” is a metric that reveals the net quantity of coins moving into or out of exchanges. It’s calculated by simply taking the difference between the inflows and the outflows.
When the indication takes an unfavorable worth, it implies more ETH is leaving than in, while a favorable worth suggests the reverse.
Here is a chart that shows the Ethereum netflow for all exchanges:
The spike on the chart reveals that about 100k ETH streamed into exchanges, and chain information verifies it enjoyed the crypto exchange Binance.
Such a positive spike generally implies investors are facing heavy selling pressure, and thus they are sending their coins to exchanges for dumping them.