Ethereum Sell Signal Flashes as TD Sequential Indicator Turns Red
Ethereum is flashing an alarming sell signal after a roughly 30% rally that started near $1,500, according to top on-chain analyst Ali Martinez. The TD Sequential indicator, which predicted Ethereum's recent rally from around $1,500 to just under $2,000, has now flipped to a sell signal as the token trades at $1,881.41.
The TD Sequential is a technical analysis tool that uses an asset's performance over time to determine whether the prevailing trend will persist or if a reversal is in order. With Ethereum trading below its recent support zone at $1,897.27 and threatening to breach $1,875.28, it may be time for investors to lock in some profits.
Despite the sell signal, Ethereum has several factors that could contribute to a potential price increase in August. The CLARITY Act vote, expected on August 3, is likely to have an outsized impact on the digital asset's performance and could even invalidate indices derived from technical analysis.