Ethereum price nears sell signal after 31% rise

The Ethereum price has risen more than 31% over the past few weeks, but a well-known technical indicator now points to a possible reversal. Analyst Ali Martinez sees a sell signal emerging on the three-day chart, following an accurate prediction on the buy side.

Ethereum is available at OKX and Bybit.

In brief:

• The TD Sequential previously gave a buy signal around $1.500, just before a rise of more than 31%.
• Now that Ethereum is trading around $1.900, the same indicator shows a sell signal.
• Analyst Ali Martinez suggests that the time has come to take profits.

TD Sequential hit the nail on the head

The TD Sequential is a technical analysis tool that identifies potential turning points in the market based on a series of consecutive candles. Earlier this year, the system gave a buy signal on Ethereum’s three-day chart when the price was still around $1.500.

What followed was a rally of 31.49%, with Ethereum climbing to around $2.000. In hindsight, that made the earlier signal fairly accurate timing. The Ethereum community followed the move closely, also because ETH gained ground on Solana during the same period.

Sell signal around $1.900 to $2.000

The same indicator is now turning into a sell signal. At the time of the analysis, Ethereum was trading around $1.980, but the price now stands at $1.900, down 1.1% over the past 24 hours. This suggests that the market is already pulling back slightly from the recent peak.

Martinez says that when the TD Sequential issues a sell signal, it can be wise to lock in (some of) the profits. This is not necessarily a prediction of a major decline, but rather a warning that the upward movement may be losing strength. Earlier this month, news about a large Ethereum sale by Quantum Solutions also put some pressure on the price.