An analyst has explained how a pattern forming in the 3-day Ethereum chart could signal that a decline toward $1,700 may be coming.<\/p>\n
In a new post<\/a> on X, analyst Ali talked about a sell signal that has taken shape in the ETH 3-day chart. The relevant technical indicator here is the \u201cTom Demark (TD) Sequential<\/a>,\u201d which is used to spot reversals in the price of any asset.<\/p>\n The metric is made up of two phases; a setup phase and a countdown phase. In the former, candles of the same polarity are counted up to nine following a reversal in the price. Once the ninth candle is hit, the indicator signals a probable top or bottom for the asset (depending on whether the trend until now was towards up or down).<\/p>\n Once the setup is completed, the 13-candle-long countdown phase begins. At the end of these 13 candles, a potential reversal once again takes place for the asset.<\/p>\n Ethereum has registered a sharp rally recently, but according to the analyst, the cryptocurrency has now finished with the setup phase of the indicator, implying that the asset could be heading towards a period of downtrend.<\/p>\n The below chart shows this pattern in the 3-day price of the coin:<\/p>\n\n In the same chart, the analyst has drawn an ascending triangle pattern for Ethereum. \u201cAscending triangles<\/a>\u201d are made up of two lines: one parallel to the x-axis drawn through the highs in the price, while the other is made by connecting higher lows.<\/p>\n Generally, the price feels resistance<\/a> at the upper line and support at the lower one. A break out of either of these lines suggests a continuation of the trend: bullish in the case of a surge above the former, while bearish in the case of the latter.<\/p>\n From the graph, it\u2019s visible that Ethereum has recently been retesting the $2,000 to $2,150 zone, which happens to align with the resistance level of this ascending triangle.<\/p>\n Thus, it\u2019s interesting that the ETH TD Sequential setup phase has finished just as the coin has encountered this line that it has been rejected from in the past.<\/p>\n \u201cA pullback from this resistance level could lead to a dip toward the triangle\u2019s hypotenuse at $1,700, setting the stage for a potential uptrend continuation,\u201d explains Ali.<\/p>\n The analyst also notes, however, that the $2,150 level could be one to keep an eye on as if the asset can see a 3-day candlestick close above this level in the coming days, the bearish outlook could be nullified.<\/p>\n Ethereum had risen above $2,100 recently, but the coin has seen some pullback in the past day, a potential sign that the sell signal may already be in effect.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n An analyst has explained how a pattern forming in the 3-day Ethereum chart could signal that a decline toward $1,700 may be coming.<\/p>\n In a new post<\/a> on X, analyst Ali talked about a sell signal that has taken shape in the ETH 3-day chart. The relevant technical indicator here is the \u201cTom Demark (TD) Sequential<\/a>,\u201d which is used to spot reversals in the price of any asset.<\/p>\n The metric is made up of two phases; a setup phase and a countdown phase. In the former, candles of the same polarity are counted up to nine following a reversal in the price. Once the ninth candle is hit, the indicator signals a probable top or bottom for the asset (depending on whether the trend until now was towards up or down).<\/p>\n Once the setup is completed, the 13-candle-long countdown phase begins. At the end of these 13 candles, a potential reversal once again takes place for the asset.<\/p>\n Ethereum has registered a sharp rally recently, but according to the analyst, the cryptocurrency has now finished with the setup phase of the indicator, implying that the asset could be heading towards a period of downtrend.<\/p>\n The below chart shows this pattern in the 3-day price of the coin:<\/p>\n In the same chart, the analyst has drawn an ascending triangle pattern for Ethereum. \u201cAscending triangles<\/a>\u201d are made up of two lines: one parallel to the x-axis drawn through the highs in the price, while the other is made by connecting higher lows.<\/p>\nETH Price<\/h2>\n
Ethereum Has Recently Formed A TD Sequential Sell Setup<\/h2>\n