Ethereum appears to be at a pivotal moment as the TD Sequential indicator presents a buy signal on both the weekly and daily charts. This widely used technical tool, designed to identify trend exhaustion and potential reversals, suggests that the recent downturn may be losing steam, opening the door for a potential price recovery. The appearance of a buy setup on two key timeframes strengthens the case for a shift in Ethereum’s trajectory, indicating that selling pressure may be nearing exhaustion.
The weekly chart highlights Ethereum’s prolonged decline, marked by consecutive black candles representing weeks of selling pressure. However, the most recent candle shows a long lower wick, a sign that buyers are stepping in to defend lower price levels. This behavior aligns with the TD Sequential’s buy signal, which historically marks moments of trend reversals or temporary relief rallies. If Ethereum follows previous patterns associated with this indicator, it could see an upward movement in the coming weeks.
On the daily chart, a similar pattern emerges, reinforcing the possibility of a rebound. The price action has begun to stabilize near $2,630, with small-bodied candles indicating a slowdown in selling momentum. The presence of a TD Sequential buy setup on both timeframes adds to the probability of Ethereum finding a local bottom, making this a crucial zone for traders and investors watching for a potential turnaround.
Key Price Zones and Market Outlook
According to Ali’s chart, Ethereum currently hovers around $2,630, a level that has acted as an area of consolidation. If bullish momentum picks up, the next challenge will be overcoming resistance in the $2,800 to $2,900 range, where previous price action suggests sellers may step in. A sustained breakout above this region could pave the way for further upside. On the downside, support remains at approximately $2,290, and a break below this level would invalidate the bullish thesis, potentially leading to further losses.
While technical indicators suggest a short-term bounce, broader market conditions and external factors will influence whether this move is sustainable. Traders will be watching for increasing trading volume and confirmation from other indicators to validate the potential reversal. If buyers successfully reclaim lost ground, Ethereum could be setting up for a recovery, but without strong follow-through, it risks remaining in a consolidation phase.
Ethereum’s latest buy signal from the TD Sequential suggests a turning point may be approaching, with both the weekly and daily charts aligning for a possible upward move. While early signs point to stabilization, the strength of the rebound will depend on whether Ethereum can maintain support and push past key resistance levels. As traders assess the market’s reaction, the next few days will be crucial in determining whether this is a temporary bounce or the beginning of a broader recovery.
Source: https://blockchainreporter.net/ethereum-signals-potential-rebound-as-td-sequential-flashes-buy-alert/