What to know:
- Ethereum flashes a TD Sequential sell signal after a 31.5% rally, hinting at possible short-term weakness.
- ETH holds above key support near $1,884, while resistance remains between $1,968 and $1,980.
- MACD shows weakening bullish momentum as the indicator crosses below its signal line.
Ethereum price seems to be cooling off following its recent rebound, as a technical indicator that accurately anticipated the recent rise is now sending negative signals.
Even though the overall outlook on the cryptocurrency remains upbeat, analysts warn that short-term upside may be restricted unless ETH is able to break through a significant resistance level.
At the time of writing, ETH is trading at $1,903.09, with a 24-hour trading volume of $15.91 billion and a market capitalization of $229.79 billion. ETH is up 0.02% over the last 24 hours, reflecting a relatively stable session after weeks of gains.
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TD Sequential Turns Bearish After Calling ETH Bottom
On July 31, 2026, a well-known crypto analyst, Ali Martinez, highlighted the use of the TD Sequential indicator, which had correctly predicted the buying opportunity of Ethereum.
According to Martinez, the indicator provided a buying signal around the $1,500 mark, right ahead of the 31.5% rise in Ethereum. The indicator, after this impressive move in Ethereum, has now given a selling signal with Ethereum hovering near the $1,980 mark.
TD Sequential Indicator is an advanced technical analysis indicator that tries to detect trend exhaustion and trend reversal points. The fact that the TD Sequential Indicator previously predicted an Ethereum price rise has brought considerable interest to this new signal.
Ethereum Still Trades Above Key Support
Ethereum continues to trade above a key technical level even after the emergence of the new sell signal.
Ethereum is currently trading at $1,903 above the middle Bollinger Band of $1,884.35. On the upper side, the Bollinger Band is placed at $1,968.57, while on the lower side, the Bollinger Band stands at $1,800.12.
Trading above the middle band means that bulls continue to defend the prevailing trend. However, to improve the bearish trend, Ethereum needs to move above $1,968.57.
The MACD line is at 36.14, which is lower than the signal line at 38.86, while the histogram level is -2.72. Even though the MACD is still higher than the zero line, a level considered to be indicative of an upward trend, the MACD moving below the signal line is evidence of weak buying pressure.
What Could Happen Next For Ethereum Price?
ETH is nearing a key technical level. In case of success in breaking out the $1,968-$1,980 resistance range, there is a possibility that the recent bullish wave will persist with enhanced momentum.
Otherwise, if the downward pressure rises after the appearance of the TD Sequential sell pattern, ETH will have to return to the support levels close to the middle Bollinger Band at $1,884 and then try to go higher.
As things stand now, Ethereum price continues trading in a generally bullish environment, although the upcoming sessions may define the future of the recent upward surge.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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