Double Top

A double top is a bearish reversal pattern in which price reaches roughly the same high twice, separated by a pullback, and then breaks below the low between the two peaks. The shape resembles the letter M. Its logic is straightforward: the market tried twice to push through a level and failed both times, revealing that demand is exhausted at that price; when the intervening low — the pattern's neckline — gives way, trapped buyers from both peaks add selling pressure.

For example, suppose Ethereum rallies to $3,600, pulls back to $3,300, rallies again to $3,590, and then declines. If price closes below $3,300, the double top is confirmed, and the classical measured target is the pattern's height projected downward — roughly $3,000 in this case. The second peak often forms on noticeably weaker volume, another sign of fading interest.

A common misconception is that two similar highs alone constitute the pattern; without a confirmed break of the intervening low there is no double top, only a range, and price frequently breaks upward through twice-tested resistance instead — repeated tests can actually weaken a level. Traders therefore wait for the neckline break, and often a retest of it from below, before treating the pattern as active.