Ethereum is showing signs of a potential recovery after successfully holding a key demand zone, while a bullish technical formation on its monthly chart is attracting growing attention from traders and analysts.

The cryptocurrency recently generated two monthly TD Sequential Buy signals — Black 9 and S13 — suggesting that the prevailing bearish trend may be losing momentum. The TD Sequential, developed by market technician Tom DeMark, is a widely followed timing indicator designed to identify trend exhaustion and potential reversal points by counting consecutive candles meeting specific price-relationship criteria. Ethereum (ETH) is currently trading at approximately $1,920.43, with a 24-hour trading volume of $6.78 billion. Its market capitalization stands at roughly $231.76 billion, accounting for about 10.49% of the total cryptocurrency market.

Ethereum Monthly Chart Signals Possible Trend Reversal

According to analyst Ali Charts, Ethereum's two buy signals emerged as a result of the prolonged weakness in the asset's price action. The analyst referenced several historical TD Sequential signals on Ethereum's chart for context: the A13 sell signal that appeared in April 2022 and preceded a 75% decline, the September 2022 Black 9 buy signal that preceded a rally of approximately 236%, and the April 2025 A13 buy signal that was followed by a gain of roughly 258%.

Ethereum's current market structure also lends support to the bullish case. ETH has repeatedly defended the $1,800–$1,850 demand zone, a level where buyers have consistently stepped in during previous pullbacks.

Recent market data further reflects renewed interest in the cryptocurrency. Spot Ethereum ETFs, which began trading in the United States in July 2024, recorded $244.94 million in net inflows over the past week, marking their strongest weekly performance in nearly four months. Additionally, two large wallets acquired a combined 80,000 ETH, valued at approximately $152 million.

Resistance at $2,000 Remains Key for Ethereum Price

Despite the improving structure, Ethereum still faces a significant hurdle between $1,980 and $2,000. This region has acted as a barrier throughout the recent recovery, and a sustained move above it would be necessary to confirm stronger upside momentum.

A successful breakout could first expose the $2,100 area, which represents the next major upside target in the current setup and would mark a clear extension of ETH's recovery from the lower support zone. Technical analysis has also identified the $1,930–$2,000 range as the critical resistance band that must be cleared before a broader advance can materialize.

On the downside, the $1,800–$1,850 zone remains the most important support area to monitor. As long as ETH continues to hold above this region, the higher-high and higher-low structure identified in the analysis remains intact.

For market participants, $2,000 is emerging as the defining level for Ethereum's next major directional move. A sustained breakout could strengthen the case for a push toward $2,100 and potentially beyond. Conversely, a failure to overcome resistance, followed by a break below $1,800, would challenge the current bullish structure.