The largest altcoin by market cap rode the recent minor bullish wave in the cryptocurrency market, surging from just over $1,500 to almost $2,000 to mark a multi-month peak.
However, it stalled there as it couldn’t breach that psychological level. Moreover, the same technical tool that predicted the substantial revival has now flipped bearish.
Is ETH in Trouble?
According to Ali Martinez, the TD Sequential, a metric used to determine the underlying asset’s potential exhaustion moves in either direction, has been quite successful in determining ETH’s trend reversals. Back in early July, when Ether slumped to a multi-year low at around $1,520, it flashed a buy signal. This was followed by a major monthly rally that drove ETH to $1,980 last week.
As mentioned above, though, the asset’s run was halted at that level, and the TD Sequential is hinting at further trouble ahead. Martinez noted earlier today that the indicator has flipped to a sell signal and suggested that investors might consider taking some profits off the table.
Another popular analyst going by the X handle Crypto Lens shared a similar opinion. They noted that Ethereum has stuck between $1,860 and $1,955 for a 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 week or so in consolidation below that level before the final leg down begins and drives the asset south to somewhere between $1,400 and $900. Once it cleanses the weak hands, ETH’s next bull run can begin, and the analyst’s target is a big one – $7,000.
Not Good Against BTC
Crypto Rover also weighed in on the altcoin’s performance but focused on the trading pair against BTC. He outlined a chart that shows ETH has been charting new lower highs and lower lows for 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 outperformed the market leader in the past month, jumping to 0.03. However, Crypto Rover believes another rejection is coming, which could drag it south to a fresh multi-year low of under 0.0235.
Source: CryptoPotato
