Ethereum is flashing a major long-term warning signal as price action on the monthly chart begins to resemble a classic double top formation – a pattern that historically signals exhaustion after extended uptrends.
- Ethereum is forming a potential monthly double top.
- The $1,055 level is the key neckline and aligns with the 100 MA.
- Holding $1,800 keeps short-term structure intact; losing it risks further downside.
- The Ethereum Foundation plans to stake 70,000 ETH worth about $128 million.
The structure shows two prominent peaks at similar levels, with momentum indicators such as MACD and RSI rolling over. Monthly RSI is trending lower and sitting near the mid-range, suggesting weakening bullish pressure rather than strong accumulation. Meanwhile, MACD momentum appears to be losing strength, reinforcing the view that upside momentum is fading.
The critical level now sits far below current price action.
The Neckline: $1,055 and the 100-Month Moving Average
The lower trend line near $1,055 is acting as the neckline of the potential double top. This level is particularly important because it aligns closely with the 100-month moving average – a historically strong dynamic support zone for Ethereum.
If Ethereum were to lose this level on a monthly closing basis, the technical structure would confirm the double top pattern, potentially opening the door to a deeper corrective phase. In classical technical analysis, the measured move following a confirmed double top can be significant, often matching the height of the formation.
However, until the neckline is broken, the pattern remains unconfirmed. Double tops only activate after decisive support failure.
Short-Term Structure: Decision Zone Between $1,800 and $2,050
On lower timeframes, Ethereum is trading in what analysts describe as a decision zone.
Reclaiming the $2,045–$2,050 area could restore short-term strength and open a move toward the $2,150–$2,200 region, which stands as a major technical hurdle. Holding above $1,800 keeps the current structure intact in the near term.
ETHEREUM SHORT-TERM MAP
Reclaim $2,045–$2,050 strength returns
Hold above $1,800 structure intactBreak $2,050 opens path to:
$2,150 to $2,207 (major hurdle)Lose $1,800 clean?
$1,740 becomes the downside magnet.Decision zone.
Levels first. Opinions later. pic.twitter.com/biRd3dhvZY
— Merlijn The Trader (@MerlijnTrader) February 24, 2026
A clean break below $1,800 would shift momentum lower, with $1,740 emerging as the next downside magnet. Some traders are also pointing to bearish continuation patterns forming on daily charts, projecting further weakness if breakdown conditions accelerate.
The Ethereum Foundation’s $128 Million Staking Move
Amid the technical uncertainty, Ethereum’s fundamentals are adding an interesting counterbalance.
According to an official announcement, the Ethereum Foundation plans to stake 70,000 ETH – worth approximately $128 million at current prices near $1,814. This move reduces circulating supply while reinforcing long-term network security and validator participation.
Large-scale staking initiatives typically signal long-term conviction from core ecosystem players. While this does not directly negate bearish chart structures, it introduces a supply-side dynamic that could dampen volatility or slow aggressive downside moves.
What Comes Next?
Ethereum now stands at a crossroads.
The long-term monthly chart warns of a potential macro reversal if $1,055 is ever breached. At the same time, short-term levels between $1,800 and $2,050 will likely determine momentum over the coming weeks.
As long as the neckline remains intact, the double top remains a risk – not a confirmed breakdown. But if macro support gives way, technical pressure could accelerate quickly.
For now, Ethereum is balancing between weakening momentum signals and strengthening on-chain commitment. The next decisive move will likely set the tone for the remainder of 2026.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/ethereum-outlook-double-top-threatens-crash-to-1000/