Ethereum (ETH) has recently garnered significant attention from traders and investors, primarily due to the revealing signals from the Technical Analysis tool, TD Sequential, on its 3-day chart. The basis for this increased interest lies in the TD Sequential’s reputation for accurately predicting trend reversals in financial markets, including cryptocurrencies.
The TD Sequential, a tool revered for its precision in trend prediction, has historically been a reliable indicator of major price movements in the cryptocurrency market. Its recent sell signal implies ETH might be gearing up for a price correction. Speculations suggest this could lead to the ETH’s price retracting approximately $2,150. A cryptocurrency analyst, Ali, shared a Twitter post providing insights on the current Ethereum price movement.
#Ethereum | The TD Sequential has flashed a sell signal on the $ETH 3-day chart. 🚨
— Ali (@ali_charts) December 10, 2023
If this signal is confirmed, it might set up a prime buying opportunity with #ETH potentially retracing to $2,150. This could be a key moment before a potential rally toward $3,500. pic.twitter.com/hozCr7CNQZ
This retraction is significant because, for keen market observers, the potential dip in Ethereum’s value is seen not as a setback but as a strategic buying opportunity. The drop to $2,150 is expected to act as a consolidation point, laying the groundwork for a robust comeback. The cryptocurrency market is volatile, and Ethereum has been no exception. However, this anticipated decline might be the precursor to a significant rally. Market analysts are eyeing a potential surge in Ethereum’s value, with projections setting the next target at around $3,500.
Over the past week, ETH has been hovering above $2,300, with minor fluctuations in between. The bulls and bears have been fiercely battling for control, leading to ETH’s price consolidating at this range. However, today, the bearish trend is gaining momentum as the TD Sequential suggests a potential downturn. The support level at $2,300 has already been breached, with strong indications that the bearish trend might continue.
Ethereum price at the time of reporting is at $2,250, with a strong dip of more than 4% in the past 24 hours. The selling pressure is mounting, and if the drop to $2,150 materializes, it could lead to a further decline in ETH’s value. The current market capitalization of Ethereum stands at approximately $269 billion, ranking it as the second-largest cryptocurrency by market cap. However, the trading volume is still on an uptrend, indicating that the market is still active and traders are taking positions in anticipation of a potential rally.
The hourly technical indicators for Ethereum also suggest a downward trend, with the Relative Strength Index (RSI) currently at 34. This indicates that there is still room for further decline before ETH hits oversold levels. The Bollinger Bands are narrowing, indicating a possible increase in price volatility soon. The upper band is currently at $2,416, while the lower band sits at $2,274. This suggests that a dip to the lower band is possible before any significant price movement.
