Ethereum (ETH) Faces Critical Price Level
After a strong start this week, Ethereum (ETH) is back at the critical price level of $2,000, which is currently acting as the lower end of the critical resistance zone. Indicators suggest that there may be further declines before the second-largest cryptocurrency by market capitalization could continue upward.
TD Sequential Tool Analysis
Professional crypto trader Ali Martinez pointed out that Ethereum’s “TD Sequential is flagging a sell signal on the ETH 3-day chart” as it tests “a major resistance zone between $2,000 and $2,150, aligning with the x-axis of an ascending triangle pattern.” The TD Sequential tool aims to pinpoint the precise timing of trend exhaustion and price reversal, created by market analyst Tom DeMark.
Potential Uptrend Continuation
Martinez also mentioned that a “pullback from this resistance level could lead to a dip toward the triangle’s hypotenuse at $1,700, setting the stage for a potential uptrend continuation.” A sustained 3-day candlestick close above $2,150 could negate the bearish outlook for Ethereum.
Hot Take: Potential for Larger Gains
All in all, Ethereum could experience a temporary decline but could act as a springboard for larger gains in the future if other indicators fall in line with this analysis and positive developments related to the asset occur.
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