The largest altcoin by market cap experienced a notable increase during the recent minor bullish wave in the cryptocurrency market, rising from just over $1,500 to nearly $2,000, thereby reaching a multi-month peak. However, it encountered a standstill as it was unable to surpass that psychological threshold. Moreover, the same technical tool that predicted the substantial revival has now flipped bearish. Ali Martinez notes that the TD Sequential, a metric utilised to assess the potential exhaustion of an underlying asset’s movements in either direction, has proven effective in identifying trend reversals for ETH.
In early July, when Ether experienced a decline to a multi-year low of approximately $1,520, it indicated a potential buying opportunity. This was followed by a significant monthly rally that propelled ETH to $1,980 last week. As noted previously, the asset’s momentum was interrupted at that level, and the TD Sequential indicates potential challenges on the horizon. Martinez observed earlier today that the indicator has transitioned to a sell signal and recommended that investors may want to contemplate realising some profits. Another well-regarded analyst operating under the X handle Crypto Lens expressed a comparable viewpoint. They observed that Ethereum has remained within the range of $1,860 to $1,955 for a specific reason, as the bull trap is “just getting started.” They added that a run to the $2,000 resistance will be followed by the “real capitulation.”
Crypto Lens’ scenario envisions a period of consolidation below that level for approximately a week before the final leg down commences, potentially driving the asset to a range between $1,400 and $900. Once it cleanses the weak hands, ETH’s next bull run can commence, with the analyst setting a substantial target of $7,000. Crypto Rover also provided insights on the altcoin’s performance, specifically emphasising its trading pair against BTC. He presented a chart indicating that ETH has been establishing new lower highs and lower lows over the past year.
It began with a local peak at 0.04 marked last October, before Ethereum gradually lost a lot of traction that culminated with a drop to 0.025 in June. It surpassed the market leader in the previous month, rising to 0.03. However, Crypto Rover anticipates that another rejection is imminent, which could lead to a decline towards a new multi-year low of below 0.0235.