Ethereum Signals a Potential Price Decline
An analyst recently discussed how a pattern forming in the 3-day Ethereum chart could indicate a potential decline toward $1,700.
Ethereum Forms TD Sequential Sell Setup
In a recent analysis, Ali explained a sell signal that has emerged in the ETH 3-day chart using the “Tom Demark (TD) Sequential” indicator, which identifies price reversals. The indicator comprises two phases: a setup phase and a countdown phase. The setup phase involves counting candles of the same polarity up to nine following a price reversal, signaling a probable top or bottom for the asset. Once this is completed, the 13-candle-long countdown phase begins, indicating another potential reversal for the asset.
Ethereum’s Recent Rally and Implications
Despite Ethereum’s recent rally, the completion of the setup phase suggests that the cryptocurrency may be entering a downtrend period. The chart indicates that Ethereum has been retesting the $2,000 to $2,150 zone, aligning with resistance levels of an ascending triangle pattern.
The Potential Price Movement
According to Ali, a pullback from this resistance level could lead to a dip toward $1,700. However, if Ethereum sees a 3-day candlestick close above $2,150 in the coming days, the bearish outlook could be invalidated.
ETH Price Movement
While Ethereum recently rose above $2,100, it has experienced some pullback in the past day, suggesting that the sell signal may already be in effect.
Hot Take
The completion of Ethereum’s TD Sequential setup phase and its retesting of resistance levels indicate a potential downtrend towards $1,700. However, continued monitoring of its price movements is crucial to confirm or negate this bearish outlook.
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