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.
Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding. A guiding star for both audacious explorers and curious neophytes journeying through the crypto galaxy, Newt’s insights forge a compass for insightful decision-making amidst the ever-evolving universe of digital assets. With the precision of a wordsmith, they craft a narrative that enriches the evolving chronicle of the crypto cosmos.
