After starting out strong this week, Ethereum (ETH) is back at the critical price level of $2,000, which is currently acting as the lower end of the critical resistance zone, and indicators point to more declines before the second-largest cryptocurrency by market capitalization could continue upward.
Indeed, according to the professional crypto trader Ali Martinez, Ethereum’s “TD Sequential is flagging a sell signal on the ETH 3-day chart” as the asset is testing “a major resistance zone between $2,000 and $2,150, aligning with the x-axis of an ascending triangle pattern,” as he explained in an X post published on November 15.
Created by market analyst Tom DeMark, the TD Sequential tool aims to pinpoint the precise timing of trend exhaustion and price reversal. It is a counter-trend indicator that seeks to overcome the issue of various technical analysis (TA) indicators that perform well in trending markets but poorly in range markets.
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Furthermore, the crypto analyst noted that a “pullback from this resistance level could lead to a dip toward the triangle’s hypotenuse at $1,700, setting the stage for a potential uptrend continuation,” advising his followers to “keep an eye on the crucial $2,150 level” as “a sustained 3-day candlestick close above this could negate the bearish outlook.”
Ethereum price analysis
Meanwhile, Ethereum was at press time changing hands at the price of $2,002.37, which is a decline of 1.65% in the last 24 hours while still keeping the 6.11% advance accumulated across the previous seven days and a more significant gain of 26.23% over the past month, as per data on November 15.
All things considered, Ethereum could follow the path set by Martinez, which does mean a temporary decline but could act as a springboard for larger gains in the future, should other indicators fall in line with this analysis, along with positive developments related to the asset.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
