Another 63% Crash Warning...TD Sequential Points to Ethereum $1,071 as Buy Zone

▲ Ethereum (ETH)/AI generated image

As Ethereum (ETH) has given back most of its gains from early this month, the TD Sequential indicator, which has accurately predicted major turning points in the past, has once again issued a sell signal, raising concerns about a further sharp decline.

According to CryptoPotato, cryptocurrency analyst Ali Martinez stated that a new TD Sequential sell signal has appeared on Ethereum's weekly chart. This indicator accurately predicted an 87% and 134% rise after buy signals on April 14, 2025, and June 16, 2025, respectively, and a 63% correction after a sell signal on August 25, 2025.

Martinez suggested that if selling pressure increases, Ethereum could drop to the short-term support level of $1,900, with medium-term and long-term downside targets of $1,565 and $1,090, respectively. He assessed the $1,071 range, near the bottom of a wider channel, as a strong potential buying area.

On-chain analytics platform Santiment reported that Ethereum network realized profits reached their highest level in three weeks. Despite the recent correction, investors realized approximately $74.58 million in profits, which is attributed to holders who accumulated Ethereum at lower prices earlier this year taking profits even during the downturn.

Santiment explained that Ethereum traded below $2,000 for a significant period in February and March, and some investors continued to accumulate despite the uncertain market environment at the time. Many of these wallets are still in profit after the recent pullback, and the 4-hour chart shows price compression around $2,240 and increased on-chain transaction activity, suggesting significant distribution movements.

Outflows also continued from US spot Ethereum ETFs. According to SoSoValue data, spot Ethereum ETFs recorded net outflows for four consecutive trading days this week, with $17 million on May 11, $130.6 million on May 12, $36.3 million on May 13, and $5.65 million on May 14. The net outflow on May 12 was presented as the largest daily outflow since March.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*