Ethereum Faces Grim Forecast: Historic Sell Signal Reappears

Market analysts are sounding the alarm for Ethereum as a rare technical indicator, which previously signaled a 63% price collapse, has flashed once again on the weekly charts.

The TD Sequential Warning

Technical analyst Ali Martinez recently identified a Tom Demark (TD) Sequential sell signal on Ethereum’s one-week price candle. This specific indicator is a staple of technical analysis used to identify trend exhaustion and potential reversals. According to Martinez, the setup completed with nine consecutive green candles, suggesting that the recent bullish momentum may have reached a breaking point.

A History of Accuracy

The concern surrounding this signal isn't merely theoretical; the indicator has a track record of high reliability over the past year. In April and June of last year, the TD Sequential successfully predicted price surges of 86% and 134% via buy signals. Conversely, a sell signal in August was followed by a devastating 63% drawdown. With the same pattern emerging now, experts suggest Ethereum is likely entering a significant corrective phase.

Potential Price Targets

If the bearish trend is validated by price action, analysts have mapped out three primary support zones for the coming months. In the short term, Ethereum could dip to $1,900, while the mid-term outlook suggests a slide toward $1,595. In a more severe long-term scenario, the asset may fall as low as $1,090, a level that aligns with the bottom of a long-standing parallel channel. Investors are now watching closely to see if Ethereum’s current support can hold or if a historic repeat is inevitable.