Ethereum ends 6-month decline, but another 'sell' signal...how far will it fall?

▲ Ethereum (ETH)

Ethereum (ETH) is attempting to rebound after breaking a six-month downtrend, but a strong sell signal has been detected again at key technical resistance levels, raising red flags for a price decline.

BeInCrypto reported on April 23 (local time) that Ethereum recently gained momentum, approaching the 100-day exponential moving average (EMA) at around $2,353, but selling pressure is increasing in that area. The technical indicator TD Sequential has generated a 9-count sell signal on the daily chart, indicating upward exhaustion. This indicator has accurately predicted Ethereum's reversals from major highs in the past, leading to increased tension among market participants.

Currently, Ethereum is blocked by a strong resistance wall formed between $2,353 and $2,385. The 100-day EMA acts as a watershed for long-term trends, and failure to settle above this range is expected to lead to a short-term price correction. The Relative Strength Index (RSI) is at 54, indicating a predominance of buying power, but also suggesting a potential correction before entering the overbought zone. For Ethereum to definitively break through the resistance line, it is essential that it is accompanied by trading volume.

Support levels are formed in the range of $2,108, which was the basis of the recent rebound, and $2,085, where the 20-day EMA is located. If Ethereum breaks the $2,108 support level due to the sell signal, the price could sequentially drop to $1,911 and $1,741. In a worst-case scenario, if the downward pressure intensifies, there is a possibility of a retreat past $1,524 to the psychological last line of defense at $1,405.

The macroeconomic backdrop is having a complex impact on Ethereum's price. US President Donald Trump's announcement of an extended ceasefire in the Middle East brought relief to the market, improving overall investor sentiment for cryptocurrencies, including Bitcoin (BTC). However, Ethereum has shown relative weakness compared to Bitcoin, struggling to break through resistance. The concentration of institutional investor inflows into Bitcoin has weakened Ethereum's momentum for further gains, which enhances the reliability of the sell signal.

While the fundamentals of the Ethereum ecosystem remain solid, short-term technical indicators point to the need for a correction. Analysts recommend confirming a breakthrough of key resistance levels before reacting, rather than aggressively chasing purchases in the current range. If a closing price firmly above $2,400 is not established, a volatile sideways market is expected to continue for some time. Market participants are monitoring the validity of the warning signal sent by the TD Sequential indicator and focusing on whether support levels hold.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*