An analyst underlined how Ethereum saw a sales signal on the sequential Tom DeMark (TD) alongside the retest of a key resistance line.
Ethereum is negotiated around the upper limit of the downhill channel
In a new article on X, analyst Ali Martinez spoke of how Ethereum looks from the point of view of technical analysis (TA). First, Martinez stressed that ETH is negotiating in a channel descending for a few months.
The descending channel refers to a consolidation model which forms each time the price of an asset moves between two parallel lines which are tilted downwards. It is a type of parallel channel.
You will find below the graph shared by the analyst who shows the downhill channel for the price of 12 hours of Ethereum.
According to the graph, it is visible that Ethereum fell towards the lower level of the canal descending at the end of September, but that it found support and rebounded. The lower limit of all parallel channels is supposed to be a source of support, which corresponded to the pattern.
Since the rebound, ETH has raised the upper limit of the canal. As Martinez made the post, the medal held her, but she has since added to her earnings and is now looking to achieve a lasting break in front of the resistance.
Ethereum has made three attempts to break this barrier in the past two months, so it remains to be seen if the last movement above the line will last. Something that could make the sustainability of the rally more difficult is another TA alert which appeared for the assets: a sequential TD signal.
TD Sequential is an indicator that is generally used to locate potential reversal points in the price of any active. These are two phases, called the configuration and the countdown. In the first of them, the indicator has candles of the same color up to nine. Once these nine candles are, it gives a higher or lower signal, depending on the color of the candles.
The countdown is just won where the configuration ends and runs the counts for another lap, except that this time, it measures thirteen candles, not new. After these thirteen candles, the medal could be considered to have reached another turnaround.
The latest Ethereum TD sequential signal came after nine green candles, which means that from the point of view of the indicator, the upward trend can reach a state of exhaustion.
With the resistance and this signal looming on ETH’s head, the rally could face a challenge. On the basis of the place where the midline is located and the results of the downhill channel, the analyst says: “A rejection here could send Ethereum to $ 4,100, or even $ 3,780.”
Ethn price
At the time of writing the editorial staff, Ethereum is negotiated about $ 4,730, up almost 13% compared to last week.
