After starting out strong this week, Ethereum (ETH) is back at the critical price level of $2,000, which is currently acting as the lower end of the critical resistance zone, and indicators point to more declines before the second-largest cryptocurrency by market capitalization could continue upward.
Indeed, according to the professional crypto trader Ali Martinez, Ethereum’s “TD Sequential is flagging a sell signal on the ETH 3-day chart” as the asset is testing “a major resistance zone between $2,000 and $2,150, aligning with the x-axis of an ascending triangle pattern,” as he explained in an X post published on November 15.
Created by market analyst Tom DeMark, the TD Sequential tool aims to pinpoint the precise timing of trend exhaustion and price reversal. It is a counter-trend indicator that seeks to overcome the issue of various technical analysis (TA) indicators that perform well in trending markets but poorly in range markets.
Furthermore, the crypto analyst noted that a “pullback from this resistance level could lead to a dip toward the triangle’s hypotenuse at $1,700, setting the stage for a potential uptrend continuation,” advising his followers to “keep an eye on the crucial $2,150 level” as “a sustained 3-day candlestick close above this could negate the bearish outlook.”
Ethereum price analysis
Meanwhile, Ethereum was at press time changing hands at the price of $2,002.37, which is a decline of 1.65% in the last 24 hours while still keeping the 6.11% advance accumulated across the previous seven days and a more significant gain of 26.23% over the past month, as per data on November 15.
All things considered, Ethereum could follow the path set by Martinez, which does mean a temporary decline but could act as a springboard for larger gains in the future, should other indicators fall in line with this analysis, along with positive developments related to the asset.
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