Ethereum has been struggling for several days, falling below the $2,800 mark, unable to reclaim it as support to initiate a recovery rally. This key level remains an important hurdle for bulls, and as the price continues to consolidate below it, bearish sentiment is growing. Many analysts are calling for a continuation of the downtrend, which reflects the depressed sentiment in the market. Investors who once believed that Ethereum would rally along with Bitcoin this year are now showing signs of doubt.
However, not everyone is bearish. Some investors remain optimistic, pointing to signs that Ethereum could be preparing for a recovery phase. Crypto analyst Ali Martinez recently shared a technical analysis showing the TD Sequential indicator flashing a buy signal on Ethereum’s cycle chart. This rare event has historically indicated the beginning of a major trend reversal. Martinez noted that whenever the indicator is triggered on a weekly timeframe, Ethereum is usually followed by strong upward momentum, signaling a bullish phase ahead.
As Ethereum lingers below the $2,800 resistance level, traders and investors are watching closely. If history repeats itself and the TD sequential signal proves accurate, Ethereum could surprise the market with an aggressive move into higher price levels.
Ethereum prepares for recovery phase
Ethereum is testing critical liquidity below $3,000, a psychologically important price point that analysts believe will determine Ethereum’s performance in the coming weeks. This level has become a battleground between bulls and bears, with market sentiment still highly divided.
Retail investors have lost confidence in the potential for a near-term recovery and continue to sell, adding to downward price pressure. Meanwhile, large players appear to be taking advantage of the dip and accelerating their accumulation of Ethereum, a sign of confidence in the asset’s long-term potential.
Martinez recently shared a technical analysis of X, highlighting an important historical pattern on Ethereum’s weekly chart. Martinez noted that every time the TD Sequential indicator flashes a buy signal near the lower boundary of Ethereum’s long-term ascending channel, the price has historically rebounded strongly. The indicator is widely used by traders to spot trend reversals, suggesting that Ethereum may be approaching a critical moment.
According to Martinez, a similar setup is unfolding as Ethereum consolidates below a key resistance level. If the TD sequential signal plays out as it has in the past, Ethereum could be ready for a strong recovery rally. Reclaiming the $3,000 level and holding it as support would mark the first step in reversing the bearish trend and initiating a long-term uptrend. The coming weeks will be crucial for Ethereum as investors will be watching for signs of a breakout or further decline.
ETH Consolidates Ahead of Major Move
Ethereum (ETH) is trading at $2,690 after several days of sideways trading and market indecision. This period of stagnation has investors speculating on ETH’s short-term direction as sentiment remains divided between a bullish recovery and the potential for further downside. The lack of momentum above key resistance levels is fueling uncertainty, with both bulls and bears struggling to take decisive control.
For Ethereum to start a recovery uptrend, bulls must reclaim the $2,800 mark as support. This critical level has been acting as a key hurdle in recent weeks and a break above it will pave the way for a push towards the $3,000 mark. A successful drop above $3,000, which is a psychological and technical resistance level, will confirm a reversal of the downtrend and establish bullish momentum in the market.
However, if ETH fails to recover the $2,800 level, the risk of further downside remains. A pullback could bring the price into the low demand zone around $2,500, where stronger support may be found. The next few trading sessions will be crucial as Ethereum's price action could affect market sentiment and influence its short-term trajectory. As the market remains uncertain, investors are closely watching for a decisive breakout or further consolidation.
