Usman Salis
Ethereum traders are watching closely as technical indicators hint at a possible reversal. After testing resistance at the upper edge of its descending channel, ETH is now confronting strong selling pressure, and the TD Sequential indicator has just flashed a warning sign. This development could bring increased volatility in the days ahead.
Technical Setup and Key Levels
Market analyst Ali recently pointed out that Ethereum's TD Sequential has just triggered a sell signal at the critical $4,600 resistance zone. Historically, similar signals have marked local tops before corrective pullbacks took hold.
The chart reveals several important dynamics at play. ETH has touched the top of its descending channel, the same area where previous rallies stalled out. The TD Sequential indicator is showing a '9' setup at resistance—a classic sign that the current move may be running out of steam. If this rejection plays out, traders are eyeing support levels at $4,100, which represents mid-channel support, and potentially $3,780 at the lower channel boundary. Despite recent upward momentum, the price action suggests bulls are struggling to maintain control each time they challenge this upper limit.
Bearish Factors in Play
Several headwinds could weigh on Ethereum's price going forward. The technical picture looks stretched after a sustained rally, and TD Sequential sell setups often emerge when uptrends become overextended. Broader market sentiment remains cautious as traders navigate ongoing macroeconomic uncertainty. Meanwhile, capital has been rotating into Bitcoin, leaving Ethereum vulnerable to underperformance relative to the broader crypto market.
Usman Salis
