Ethereum's gains weaken, and the TD Sequential indicator sends a bearish sell signal
Ethereum must return to $1900 to strengthen short-term bullish momentum. Analysts warned that another encounter with resistance could trigger a deeper price correction.
Ethereum (ETH) has weakened momentum after a strong rebound from July lows. Buyers pushed the price to close to $2000 at one point, but then stalled before resistance. Market sentiment has shifted and technical indicators are beginning to show signs of weakness. Traders are closely monitoring multiple key support levels, while analysts discuss the next major move. The next few trading days will determine whether Ethereum will continue its gains or enter a new round of adjustment before hitting new highs.
TD Sequential warns that momentum is weakening
Ethereum has risen from about US$1520 in early July to close to US$1980 last week. The rally was the strongest rally in months. However, as prices struggled below the important resistance level of $2000, buying pressure has gradually subsided. Market analyst Ali Martinez pointed out that the TD Sequential indicator sends new signals. The indicator identified buying opportunities near July lows, after which Ethereum rose sharply.
Now, the indicator turns to a sell signal, indicating that bullish momentum is beginning to weaken. This latest signal comes after Ethereum failed to stand firm at $1900. Repeated resistance to the region has eroded buyer confidence. As the upward momentum continues to slow, sellers are gradually regaining control. Technical indicators also support this cautious outlook.
On the four-hour chart, Ethereum traded at around $1883 after falling below its 20-cycle and 50-cycle exponential moving averages. These moving averages are currently near $1905 and $1900, posing direct resistance to any attempt at a rebound. The 100-cycle exponential moving average near $1878 provides near-term support. A break below this level could drop further to the 200-cycle exponential moving average around $1845.
Analysts expect downside risks to remain
Many market analysts believe that Ethereum will face another resistance test before regaining its upward momentum. Analyst Crypto Lens believes that Ethereum is still trapped in the range of $1860 to $1955, and selling pressure limits further room for gains. According to this view, prices may briefly recover to $2000 before starting a new round of decline. If bearish momentum accelerates, the downside target range is expected to be between $1400 and $900.
Another analyst, Crypto Rover, focuses on Ethereum's performance relative to Bitcoin. Over the past year, ETH/BTC trading pairs have continued to form lower highs and lower lows. Although the trading pair rebounded to around 0.03 from around 0.025 in June, the overall weakness pattern remains unchanged. Rover expects the pair to encounter resistance again and could fall below 0.0235. If this is the case, it will mark another multi-year low for Ethereum relative to Bitcoin.
The result will also highlight the difficulties Ethereum continues to face in competing with market leader Bitcoin. Derivatives data shows traders are becoming increasingly cautious. As Ethereum fell towards $1880, open interest fell from approximately $13.47 billion to $13.31 billion. Although activity has rebounded slightly since then, traders have remained reluctant to increase leveraged positions.

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