Ethereum is testing the upper boundary of its price channel as the TD Sequential indicator flashes a sell signal, according to analyst Ali Charts. The overlap of technical resistance and weakening momentum raises the risk of a short-term pullback, with potential downside targets at $1,770, $1,700, and $1,505. The channel top acts as resistance because previous advances have struggled near the same boundary, while the TD Sequential signal suggests the current upward move may be losing strength after an extended run.
Ali Charts Identifies TD Sequential Sell Signal at Channel Resistance
Ethereum is testing the upper boundary of its price channel as the TD Sequential indicator flashes a sell signal, according to analyst Ali Charts. The overlap of technical resistance and weakening momentum increases the risk of a short-term pullback.
The channel top acts as resistance because previous advances have struggled near the same boundary. At the same time, the TD Sequential signal suggests the current upward move may be losing strength after an extended run.
The first downside level sits near $1,770, where buyers could attempt to defend the recent structure. A clear break below that support would shift attention toward $1,700, which represents the next major target in the bearish scenario.
However, the sell setup still requires confirmation through rejection and continued downside movement. A decisive breakout above the channel would invalidate the immediate correction case and suggest buyers remain in control.
TraderJBx Outlines Liquidity Sweep Scenario Toward $1,505
Ethereum's rebound from the June 26 low looks impulsive on the 12-hour chart, but the wider structure leaves room for one final move lower, according to analyst TraderJBx. TraderJBx expects ETH could first sweep liquidity above recent highs before reversing toward the equal lows near $1,505.
The short-term chart shows a five-wave advance from the late-June bottom, which normally supports continued upside after a pullback. Under that scenario, ETH could retrace toward the $1,700-$1,760 region before extending above $2,000.
However, the broader chart presents a more bearish interpretation. The June 6 and June 26 lows formed near the same level, while the surrounding moves resemble corrective ABC structures, raising the possibility of an inverted flat correction.
In that case, ETH could push above the recent $1,850 area to collect liquidity and attract late buyers before turning lower. A rejection after that sweep would put $1,750 and $1,600 back in focus, followed by the equal-lows zone near $1,505.
A sustained move above $2,000 would weaken the bearish scenario and support the case for a larger relief rally. Until then, the current advance may be a temporary liquidity move rather than the start of a confirmed uptrend.
FAQ
What technical signal did Ali Charts identify for Ethereum?
Ali Charts identified a TD Sequential sell signal as Ethereum tests the upper boundary of its price channel. The overlap of technical resistance and weakening momentum increases the risk of a short-term pullback.
What downside price levels does the analysis identify for Ethereum?
The analysis identifies three downside targets: $1,770 as the first support level where buyers could defend recent structure, $1,700 as the next major target in a bearish scenario, and $1,505 near the equal lows formed on June 6 and June 26.
What scenario does TraderJBx outline for Ethereum's price movement?
TraderJBx expects ETH could first sweep liquidity above recent highs before reversing toward the equal lows near $1,505. The analyst notes that a sustained move above $2,000 would weaken the bearish scenario and support a larger relief rally.
