Ethereum price has fallen from $2,300 to $1,600 under ongoing selling pressure in recent weeks. Following this decline, the TD Sequential indicator gave a “9” buy signal on the 3-day chart. The technical outlook indicated that the selling momentum may weaken at current levels.
Technical indicators point to $1,600 area
Throughout the market weakness, Ethereum has formed lower highs and lower lows. The approximately 30 percent withdrawal occurred along with the negative atmosphere in the overall cryptocurrency market during this period. Despite this, the latest technical signal has brought the possibility of a reaction uptrend in the short term back to the agenda.
The TD Sequential indicator is calculated on nine consecutive bearish candles that close below the previous four candles. Once the count reaches level nine, it is assessed that the current trend may lose its strength.
Mini dictionary: TD Sequential is a technical analysis indicator used to measure whether markets are tired of excessively prolonged rises or falls. By itself it does not give a definitive change of direction; Confirmation is usually sought with subsequent candles.
Analyst Ali Charts stated that a TD Sequential buy signal was formed on the Ethereum chart and a small bullish candle was seen immediately after the signal.
According to Ali Charts evaluation, if buyers can maintain the $1,600 support zone, the $1,800 to $1,950 range may stand out as the next recovery target for Ethereum. On the other hand, it is stated that if the support is lost, the broader downward trend may accelerate again.
Ethereum reserves in exchanges continued to decline
In addition to the technical chart, on-chain data also attracted attention. Pointing to CryptoQuant data, Rei Researcher stated that the total Ethereum reserves in central exchanges entered a downward trend again after a short-term rise. CryptoQuant is known as an analysis platform that provides on-chain market data.
Rei Researcher emphasized that the majority of available data shows that investors prefer to hold their assets rather than sell at these price levels.
Decreasing reserves on exchanges may mean that the supply available for sale in order books is shrinking. Investors’ withdrawal of their ETH from exchanges to personal wallets is considered as an element that can alleviate the selling pressure in the short term.
The dominant breakout trend seen in the data made the support in the $1,600 region important from both a technical and on-chain perspective. However, whether a potential recovery is durable remains dependent on broader market conditions and continued interest from buyers at these levels.
