The TD Sequential indicator that flagged Ethereum's rebound off a multi-year low has flipped to a sell signal after the asset stalled below $2,000. Analyst Ali Martinez says the shift points to further downside, while another analyst sees a possible drop toward $900 before any renewed rally, and a third flags fresh weakness in ETH's trading pair against Bitcoin.
TD Sequential Turns Bearish
Ethereum, the largest altcoin by market cap, surged from just over $1,500 to almost $2,000 before stalling as it failed to clear that level. According to analyst Ali Martinez, the TD Sequential, a tool used to gauge an asset's potential exhaustion moves, has been successful at calling Ethereum's trend reversals before.
In early July, Ether slumped to a multi-year low near $1,520, and the indicator flashed a buy signal. That signal preceded a rally to $1,980 last week. Martinez noted earlier today that the TD Sequential has now flipped to a sell signal and suggested investors might consider taking some profits off the table.
Analysts Eye a Deeper Pullback
Another analyst, going by the X handle Crypto Lens, shared a similar view, noting that Ethereum has stuck between $1,860 and $1,955 because the bull trap is, according to Crypto Lens: "just getting started". They added that a run to the $2,000 resistance will be followed by the real capitulation.
Crypto Lens envisions roughly a week of consolidation below that level before a final leg down drags the asset to somewhere between $1,400 and $900. Once that move clears out weak hands, the analyst expects Ethereum's next bull run to target $7,000.
ETH Slips Further Against Bitcoin
A third analyst, Crypto Rover, pointed to Ethereum's chart against Bitcoin, which has been printing lower highs and lower lows for the past year. The pair peaked near 0.04 last October, then gradually lost ground, culminating in a drop to $0.025 in June.
Source: CryptoPotato
Trading involves risk.
Risk Disclaimer
