Ethereum’s weekly chart is showing a sell signal based on the Tom Demark (TD) Sequential indicator. Historically, this signal has often preceded a significant price drop for the cryptocurrency.
Ethereum Has Seen A TD Sequential Sell Signal
Technical analyst Ali Martinez recently pointed out a potential trend change for Ethereum based on a TD Sequential indicator. This indicator, used in technical analysis, helps identify when an asset’s price might be about to reverse direction, and it has now appeared on Ethereum’s weekly price chart.
The process happens in two steps: preparation and a countdown. We’re focusing on the preparation step right now. During this phase, the TD Sequential simply counts consecutive candles that are the same color, up to a total of nine. When it reaches nine, the indicator suggests the current price trend is likely ending.
Here’s a chart from Martinez illustrating a TD Sequential pattern that’s emerged on Ethereum’s weekly price chart.
The chart shows a recent pattern of nine consecutive green candles on the TD Sequential indicator, which could suggest that Ethereum’s upward price movement is losing steam and a reversal might be coming.
The analyst says this indicator has proven fairly accurate for Ethereum over the last year. Martinez pointed out that every signal it’s given on a weekly basis has been followed by a noticeable price movement.
Looking back at last year, I noticed my indicator gave buy signals in April and June that correctly predicted significant price increases – 86% and 134% respectively. Conversely, when I issued a sell signal in August, the price did indeed fall, experiencing a 63% drawdown.
As an analyst, I’m watching Ethereum closely. We’ve just seen a TD Sequential sell signal appear on the weekly chart, and historically, this pattern has often been followed by a price correction. Based on this, I believe Ethereum may be entering another phase of pullback.
According to analyst Martinez, Ethereum (ETH) could reach $1,900 in the near future, $1,595 in the medium term, and $1,090 eventually. He also notes that the $1,090 level aligns with a key support area identified in a previous post.
A Parallel Channel is a trading pattern that appears when the price of an asset moves consistently between two parallel lines. The upper line typically prevents the price from going higher (resistance), and the lower line prevents it from falling further (support).
Looking at the chart, Ethereum has been moving within the lower portion of a long-term price channel when viewed on a weekly basis.
According to Martinez, around $1,071 appears to be a good price to buy Ethereum. Now, it’s unclear if that price will actually hold as a support level.
ETH Price
Ethereum has gone down this week as its price is now trading around $2,220.
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2026-05-16 08:12