The TD Sequential indicator has shifted from a buy to a sell signal after Ethereum completed a strong recovery from its recent lows. Ethereum ETFs added $12.8 million in net inflows as institutional investors maintained their regulated crypto market exposure. Short-term resistance remained firm while ETF activity pointed to continued participation across major digital asset products.

Ethereum's price remains under close observation after a technical sell signal emerged alongside continued institutional ETF inflows. The TD Sequential indicator, developed by Thomas DeMark, is widely used by traders to identify potential market turning points by counting consecutive candles that meet specific price-relationship criteria; a completed "9" count typically signals momentum exhaustion. Market participants are now monitoring whether recent bullish momentum can withstand growing resistance.

TD Sequential Signals Momentum Exhaustion

Analyst Ali Charts shared a three-day Ethereum chart via a post on X, revisiting the TD Sequential indicator's recent performance and focusing on Ethereum's completed recovery from recent lows.

The indicator previously flashed a buy signal near the $1,500 region. Ethereum subsequently advanced approximately 31.5% from that setup, following the indicator's bullish reversal signal closely.

Ali Charts now reports that the indicator has produced a fresh sell signal. The latest "9" appeared after the extended rally matured, and the analyst noted that profit-taking may now warrant attention.

The broader trend still reflects higher lows across recent weeks. Buyers steadily rebuilt momentum following the earlier correction, and the price structure remained stronger than during the previous decline.

Resistance Builds After Intraday Reversal

The latest daily trading session showed shifting momentum. Buyers lifted Ethereum above several nearby resistance levels, with early strength supporting another attempt toward session highs. However, repeated advances encountered persistent selling pressure, and every recovery above resistance attracted renewed profit-taking. Buyers ultimately failed to establish a sustained breakout.

At the time of writing, Ethereum's price stood at $1,885.18 with a 24-hour change of -0.87%. A dramatic intraday reversal near the end of the session preceded the decline. Immediate support developed near the $1,880 region.

Daily trading volume reached approximately $8.33 billion, representing a 26.49% decline from the previous session. Lower participation accompanied the weaker closing performance.

ETF Inflows Continue Supporting Market Interest

Crypto ETF activity remained positive despite recent volatility. According to CoinGlass data, combined crypto ETF inflows amounted to approximately $251.88 million, bringing total assets to roughly $116.08 billion.

Bitcoin ETFs led with $233.1 million in new inflows. Ethereum ETFs added another $12.8 million during the reporting period, while XRP ETFs recorded nearly $5.98 million in inflows. Solana and HYPE ETFs posted unchanged daily flows. Institutional allocations remained concentrated in larger digital assets, with Bitcoin continuing to lead regulated investment demand.

The divergence between a technical sell signal on the three-day timeframe and sustained institutional ETF inflows reflects the tension between short-term price-momentum indicators and longer-term capital allocation trends. The $12.8 million in Ethereum ETF inflows, while modest compared to Bitcoin's $233.1 million, marks continued engagement from regulated investment channels that have been available for spot Ethereum exposure since U.S. approvals in mid-2024.

Recent weekly and monthly figures also improved considerably. Weekly inflows totaled roughly $182.06 million. Monthly inflows exceeded $1.04 billion despite the previous quarter's $7.64 billion net outflow.