Ethereum Faces Potential Sell Signal as Analyst Warns of Bearish Trend
Crypto News – In a recent post, distinguished cryptocurrency trader and analyst Ali has signaled the emergence of a sell indicator on Ethereum’s (ETH) 3-day chart. Ali’s analysis focuses on the TD Sequential indicator, which has now triggered a sell signal for the leading altcoin.
This development coincides with Ethereum’s attempt to breach a significant resistance zone ranging from $2,000 to $2,150. Ali also highlights that this particular zone aligns with the baseline of an ascending triangle pattern observable on Ethereum’s 3-day chart.
According to Ali, if Ethereum encounters resistance and retreats from this critical threshold, it could potentially dip to as low as the hypotenuse of the triangle pattern, approximately at the $1,700 mark. Such a retracement might set the stage for a potential continuation of Ethereum’s upward trajectory.
It’s important to note that Ali’s bearish analysis could be invalidated if Ethereum manages to achieve a sustained 3-day candlestick close above the $2,150 threshold.
Meanwhile, CoinMarketCap, a cryptocurrency market tracking website, reports that Ethereum is currently trading below the psychologically significant $2,000 level. At the time of this report, ETH’s price stands at $1,982.04, following a 3.77% decline in the past 24 hours.
Despite this recent price drop, Ethereum’s weekly performance remains solidly in positive territory. CoinMarketCap data indicates that ETH has gained over 5% in value over the past 7 days.
Furthermore, Ethereum, the largest altcoin by market capitalization, is presently trading near its 24-hour low. Conversely, its peak within the same timeframe reached $2,116.01.
From a technical standpoint, there is a noteworthy bearish technical flag that appears to be on the verge of confirmation. As of now, the Moving Average Convergence Divergence (MACD) line is making an attempt to cross below the MACD Signal line. If this crossover occurs, it could signal the continuation of Ethereum’s bearish trend within the next 24-48 hours. In such a scenario, ETH may drop below the $1,945 support level and potentially reach the subsequent support at $1,830.