What to know:
- Ethereum (ETH) price faces a TD Sequential sell signal while testing rising channel resistance near $1,806.
- Key support levels remain at $1,770 and $1,700 if selling pressure increases.
- Derivatives activity strengthens as open interest rises 0.64% and trading volume jumps 48.17%.
Ethereum price movement is showing a decline after having made a recovery recently, and this indicates that investors will soon be tested. Even as the price remains above critical support levels, there is resistance in the charts.
At the time of writing, ETH is trading at $1,806.6, up 0.32% over the last 24 hours. The ETH has recorded a 24-hour trading volume of $14.73 billion, while its market capitalization stands at $217.99 billion, reflecting steady interest from market participants despite limited price movement.
Ethereum Price Faces TD Sell Signal
As highlighted by crypto analyst Ali Martinez on July 12, 2026, the Ethereum price is now trading at the upper edge of a rising channel. Meanwhile, the TD Sequential has issued a sell indication, which is considered to be a technical setup for trend exhaustion after a strong upward move.
Based on Martinez’s views, should there be an increase in selling pressure at the existing resistance zone, the Ethereum price could fall back to $1,770 soon. Should that level break down, the next significant lower level could come around $1,700.
Technical indicators may fail to predict future price movement, but investors use them extensively due to the fact that they can spot places where there could be higher buying or selling action. From the technical indicators currently visible on the chart, Ethereum is getting to a place where there will have to be a decision.
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Derivatives Activity Continues to Grow
However, despite the warnings from technical indicators, the participation in derivatives trading on Ethereum continues to grow.
The Open Interest grew by 0.64% to $24.88 billion, whereas the trading volume of derivatives increased by 48.17% to $28.16 billion. The combination of growing open interest along with the increase in the trading volume usually signals the entry of new positions into the market.
The OI-weighted fund rate was still slightly positive at 0.0009% and indicates that the derivatives market is in balance with a slight bullish tendency. The small positive value indicates the existence of leverage buying, but not excessive yet.
Why This Level Is Important
Another important aspect to mention is that Ethereum continues to be one of the most observed digital currencies due to the fact that its price tends to affect the entire crypto space. A breakthrough of the resistance level could positively impact the attitude toward major altcoins.
To the short-term investor, the technical configuration currently under consideration stresses the need for monitoring the $1,770 and $1,700 support areas. Staying above these regions will enable sustaining the overall recovery trend, whereas breaking these levels will open doors for further losses before any buying interest emerges.
Ethereum Price Awaits Next Move
In the coming few trading days, the direction of Ethereum will be decided. If investors can create enough bullish momentum to take the cryptocurrency past the upper level of its channel, then the prevailing bearish signal may no longer hold sway.
But if resistance continues to be very strong and the sell-off persists, the Ethereum price could initially return to $1,770, while $1,700 will serve as the next level of support that investors should watch out for. Apart from price, open interest, volume, and funding levels will serve as key indicators.
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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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