Ethereum appears to be losing momentum after its recent rebound, as a technical indicator that successfully anticipated the latest upward move is now flashing a bearish signal.

While the broader outlook for the cryptocurrency remains constructive, analysts caution that short-term gains may be capped unless ETH breaks through a key 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. The token has gained 0.02% over the past 24 hours, reflecting a relatively stable session following weeks of advances. As the second-largest cryptocurrency by market capitalization, Ethereum's price action frequently sets the tone for the broader altcoin market, making these technical signals closely watched events for traders across digital assets.

TD Sequential Turns Bearish After Calling ETH Bottom

On July 31, 2026, crypto analyst Ali Martinez highlighted the TD Sequential indicator, which had previously and correctly predicted a buying opportunity for Ethereum. According to Martinez, the indicator generated a buy signal near the $1,500 mark, just before Ethereum rallied 31.5%.

Following that substantial move, the same indicator has now produced a sell signal, with Ethereum hovering around the $1,980 level.

The TD Sequential is an advanced technical analysis tool designed to identify trend exhaustion and potential reversal points. Developed by Thomas DeMark, the indicator counts consecutive price candles to pinpoint when an asset may be overextended in either direction. Given that it accurately foretold Ethereum's recent rise, the newly formed bearish signal has attracted significant attention among traders.

Ethereum Holds Above Key Technical Support

Even with the emergence of the sell signal, Ethereum continues to trade above an important technical threshold.

ETH is currently priced at $1,903, sitting above the middle Bollinger Band at $1,884.35. The upper Bollinger Band is positioned at $1,968.57, while the lower band sits at $1,800.12. Bollinger Bands dynamically adjust to volatility, with price holding above the middle line typically interpreted as a sign that buyers remain in control, while approaches toward the upper band can signal overbought conditions.

Trading above the middle band suggests that bulls are still defending the prevailing trend. However, for the bullish case to strengthen, Ethereum would need to push above $1,968.57.

The MACD line stands at 36.14, below the signal line at 38.86, with the histogram reading at -2.72. The MACD, or Moving Average Convergence Divergence, measures the relationship between two moving averages of price to gauge momentum direction. Although the MACD remains above the zero line—a zone generally associated with an upward trend—the fact that it has slipped below the signal line points to weakening buying pressure.

Key Levels to Watch

Ethereum is approaching a critical technical juncture. A successful breakout above the $1,968–$1,980 resistance range could allow the recent bullish wave to continue with renewed momentum.

Conversely, if selling pressure intensifies following the TD Sequential sell pattern, ETH may retrace toward support near the middle Bollinger Band at $1,884 before attempting another move higher.

For now, Ethereum continues to operate within a broadly bullish environment, though the coming trading sessions will likely determine whether the recent upward surge can be sustained. Technical indicators like the TD Sequential and MACD are widely used in crypto trading, where high volatility and round-the-clock markets make momentum signals particularly consequential, though no single indicator has proven reliably predictive across all market conditions.