Ethereum Historical Indicator Flashes Long-Term Buy Signal – Is History Repeating?
16 February 2025 - 8:00PM
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Ethereum has been struggling below the $2,800 mark for days, unable
to reclaim it as support to kickstart a recovery rally. This key
level remains a significant barrier for bulls, and as the price
continues to consolidate below it, bearish sentiment is growing.
Many analysts call for a continuation of the downtrend, reflecting
the downbeat mood in the market. Investors, who once believed
Ethereum would rally alongside Bitcoin this year, are now showing
signs of doubt. Related Reading: Bitcoin Forms Rounding Bottom –
Expert Sees Push To $100K Next Week However, not everyone is
bearish. Some investors remain optimistic, pointing to signs that
Ethereum may be gearing up for a recovery phase. Crypto analyst Ali
Martinez recently shared a technical analysis revealing that the TD
Sequential indicator has flashed a buy signal on Ethereum’s weekly
chart. This rare event has historically indicated the beginning of
a significant trend reversal. Martinez points out that whenever
this indicator is triggered during the weekly timeframe, Ethereum
often follows with strong upward momentum, signaling a potential
bullish phase ahead. As Ethereum hovers below the $2,800
resistance, 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 A Recovery Phase
Ethereum is testing critical liquidity below the $3,000 level, a
significant psychological 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 sentiment
in the market remaining highly divided. Retail investors, losing
confidence in the potential for a near-term recovery, continue to
sell, contributing to downward pressure on the price. Meanwhile,
larger players appear to be taking advantage of the dip,
accumulating Ethereum at an accelerated pace, signaling confidence
in the asset’s long-term potential. Martinez recently shared a
technical analysis on X, highlighting a significant historical
pattern on Ethereum’s weekly chart. Martinez noted that each time
the TD Sequential indicator has flashed a buy signal near the lower
boundary of Ethereum’s long-term ascending channel, prices have
historically rebounded with strength. This indicator, widely used
by traders to spot trend reversals, suggests that Ethereum may be
nearing a pivotal moment. According to Martinez, a similar setup is
unfolding now as Ethereum consolidates just below key resistance
levels. If the TD Sequential signal plays out as it has in the
past, Ethereum could be gearing up for a powerful recovery rally.
Reclaiming the $3,000 level and holding it as support would mark
the first step toward reversing the bearish trend and initiating a
long-term uptrend. The coming weeks will be crucial for Ethereum as
investors watch for signs of a breakout or a further decline.
Related Reading: Dogecoin Adam & Eve Structure Hints At Bullish
Potential – Can DOGE Breakout? ETH Consolidates Before A Big Move
Ethereum (ETH) is trading at $2,690 after days of sideways trading
and market indecision. This period of stagnation has left investors
speculating about the short-term direction of ETH, as sentiment
remains divided between bullish recovery and further downside
potential. The lack of momentum above key resistance levels has
contributed to uncertainty, with both bulls and bears struggling to
take decisive control. For Ethereum to initiate a recovery uptrend,
bulls must reclaim the $2,800 mark as support. This critical level
has acted as a key barrier in recent weeks, and breaking above it
would pave the way for a push toward the $3,000 mark. A successful
move above $3,000, a psychological and technical resistance level,
would confirm a reversal of the downtrend and establish bullish
momentum in the market. Related Reading: Avalanche Holds Key Demand
Zone – Analyst Sets $30 Target If Momentum Holds However, the risk
of further downside remains if ETH fails to reclaim the $2,800
level. A retracement could take the price into lower demand zones
around $2,500, where stronger support may be found. The next few
trading sessions will be critical, as Ethereum’s price action will
likely dictate market sentiment and influence its short-term
trajectory. Investors are watching closely for a decisive breakout
or further consolidation as the market remains uncertain. Featured
image from Dall-E, chart from TradingView
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