Ethereum Ends 6-Month Decline, But Another 'Sell' Signal Appears... How Far Will It Fall?

▲ Ethereum (ETH)

Although Ethereum (ETH) has broken its 6-month downtrend and is attempting a rebound, a strong sell signal has been detected again at key technical resistance levels, raising a red flag for a price drop.

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

Currently, Ethereum is blocked by a thick resistance wall formed between $2,353 and $2,385. The 100-day EMA acts as a watershed for long-term trends, and if it fails to settle above this zone, a short-term price correction is inevitable. The Relative Strength Index (RSI) is at 54, indicating a bullish bias, but it suggests a potential correction before entering the overbought zone. For Ethereum to decisively break through the resistance, an accompanying increase in trading volume is essential.

Support levels are formed between $2,108, which served as the base for the recent rebound, and $2,085, where the 20-day exponential moving average 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 the worst-case scenario, if downward pressure intensifies, there's 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 is showing relative weakness compared to Bitcoin and is struggling to break through resistance. The concentration of institutional investor capital inflow into Bitcoin has weakened Ethereum's additional upward momentum, 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 waiting to confirm a breakthrough of key resistance levels rather than aggressively buying in the current range. If a closing price decisively above $2,400 is not established, a volatile sideways market is expected to continue for some time. Market participants are closely monitoring the validity of the warning signal from the TD Sequential indicator and focusing on whether support levels will 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.*