Ethereum has recently exhibited signs of increasing price action after a period of decline. It currently trades at almost $1642. The market is watching closely as Ethereum hints at a probable shift in momentum while testing critical resistance levels.
Investors are paying heed to technical signals that imply a potential bounce. Notably, a substantial long position of $12.6 million was recently opened by a whale, demonstrating increased confidence among some traders.
TD Sequential Indicator and Buy Signal on Ethereum
The TD sequential indicator, devised by Tom DeMark, is designed to determine when a trend is losing momentum and may reverse. It works by counting price bars: a buy signal appears after nine successive closes lower than the close four bars earlier, suggesting that selling pressure is receding. Recently, Ethereum produced this “9” buy signal on its weekly chart, indicating a likely rebound following a downturn.
Analyst Ali Martinez noted this signal’s importance, stating it typically identifies local bottoms and correlates with the selling momentum observed in Ethereum’s RSI and candlestick patterns. The TD sequential, though powerful, is best used with other tools to validate trend shifts, as market conditions remain complex.
Ether Price Technical Setup and Key Levels
The Ethereum price technical setup shows a significant support zone at $1,616, aligned with the 50-day EMA. Resistance levels are crucial zones to watch for indications of bullish momentum. A breakout over $1,690 might result in higher objectives at $1,747 and $1,817, while failure to hold above $1,616 might lead to further downside pressure.
Recent whale activity has added excitement to market dynamics. For instance, large investors accumulated over 130,000 ETH as the price neared $1,772 last week, suggesting optimism for Ethereum’s rebound prospects. Additionally, MACD indications imply a likely bullish crossover, increasing hope for a rebound. Traders should stay cautious but monitor these levels closely for actionable possibilities.
Despite the recent ETH price drop, institutional interest in Ethereum remains steady. Large investors continue to accumulate, suggesting confidence amid broader market instability. Whale trades have increased, supporting price stability near crucial levels.
However, macroeconomic concerns and ETF outflows make traders hesitant, contributing to contradictory signals. While volatility persists, institutional involvement indicates underlying strength, which could influence Ethereum’s next move.
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