Ethereum’s price action has reached a critical juncture. The second-largest cryptocurrency struggles below $2,800, but a new technical indicator suggests a potential trend reversal.
Technical Outlook Shows Promise
The TD Sequential indicator has flashed a buy signal on ETH’s weekly chart. This respected technical tool often predicts trend exhaustion points. Analyst Ali Martinez highlighted this development as a possible turning point for Ethereum.
ETH’s recent price movement tells a compelling story. The asset dropped from $3,150 to $2,150 last week. It has since bounced back to the $2,600-$2,700 range. This recovery shows market resilience despite bearish pressure.
Key Price Levels to Watch
Several critical price levels will determine ETH’s next move:
- Immediate resistance: $2,800
- Key breakout level: $3,000
- Current support: $2,600
- Risk level: $2,500
Breaking above $3,000 could confirm a trend reversal. This move would likely attract new buyers and fuel further gains. However, losing the $2,600 support might trigger a deeper correction.
Market Implications
The weekly buy signal carries significant weight. Weekly timeframe signals often predict larger market moves. This indicator suggests the current bearish trend may be exhausted.
Institutional interest could grow if ETH reclaims $3,000. The market structure would shift bullish, potentially drawing in sidelined investors.
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The coming weeks will prove crucial for Ethereum’s trajectory. Bulls need to defend current levels while pushing for higher ground. The market remains at a pivotal point between bearish exhaustion and potential recovery.
Tags: Ethereum, Technical Analysis, Cryptocurrency Trading, Market Analysis, TD Sequential
Source: NewsBTC