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Ethereum (ETH) Flashes Strong Buy Signal. Could a Major Rebound Be Imminent?

Ethereum (ETH) might be on the verge of a significant market move, according to a recent observation by on-chain analyst Ali, who shared on X that the TD Sequential indicator has flashed a buy signal on ETH’s weekly chart. 

This technical pattern is often used by traders to anticipate potential trend reversals, particularly after sustained price declines. If history is any guide, Ethereum could be poised for a rebound that may surprise even seasoned investors.

The TD Sequential Indicator: What It Signals

The TD Sequential is a popular timing-based technical indicator developed by Tom DeMark. It is designed to identify trend exhaustion and potential inflection points in both upward and downward markets. When the indicator flashes a “buy” signal on a higher time frame like the weekly chart, it typically suggests that selling pressure may be waning, and a bullish reversal is becoming more probable.

Ali’s post draws attention to this setup, highlighting that Ethereum’s weekly chart now exhibits this bullish signal. Past occurrences of this pattern, particularly on large timeframes, have often preceded strong upward movements. For ETH traders and holders, this could mark a critical point of renewed optimism.

Ethereum’s Recent Market Activity

Over the past few months, Ethereum has traded within a wide range, experiencing both sharp rallies and deep corrections. While macroeconomic uncertainties, regulatory challenges, and broader crypto market sentiment have all contributed to price volatility, Ethereum has continued to maintain its position as the second-largest cryptocurrency by market capitalization.

Despite this, ETH has underperformed relative to Bitcoin in recent months. Bitcoin’s dominance has climbed as the market prepares for its next halving cycle, while Ethereum has struggled to maintain upward momentum. Ali’s analysis suggests that this dynamic may soon shift.

Fundamental Tailwinds Supporting Ethereum

Beyond technical indicators, Ethereum is also benefiting from strong fundamentals. The ongoing evolution of the Ethereum network through upgrades such as Proto-Danksharding (EIP-4844) is setting the stage for significantly improved scalability and lower transaction costs. With Layer 2 solutions like Optimism and Arbitrum gaining adoption, the Ethereum ecosystem is seeing increased developer activity and DeFi growth.

Additionally, the prospect of a spot Ethereum ETF approval in the United States, following the precedent set by Bitcoin ETFs, continues to stir bullish sentiment among investors. Major asset managers have submitted filings, and although regulatory clarity remains pending, institutional interest in Ethereum remains high.

A Cautious but Hopeful Outlook

While the TD Sequential is a powerful signal, no technical indicator is foolproof. Market participants should still be mindful of macroeconomic trends, regulatory developments, and liquidity conditions, which can all influence ETH’s price trajectory.

Nonetheless, with a historically reliable indicator flashing green and Ethereum’s fundamentals continuing to improve, there is growing optimism that the current price range may represent an accumulation zone rather than a consolidation before further decline.

Ali’s analysis underscores a pivotal moment for Ethereum. The TD Sequential indicator’s buy signal on the weekly chart suggests a potential bullish reversal, and with favorable fundamentals underpinning the network’s long-term growth, ETH may be preparing for its next major move. As always, investors should approach the market with informed caution—but for now, Ethereum’s technical and structural setup looks more promising than it has in months.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.


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Zaccheaus Ogunjobi
Zaccheaus Ogunjobi
I am a passionate and experienced writer with a strong focus on cryptocurrency and the financial landscape. With a keen eye for market trends and emerging financial technologies, I strive to deliver insightful, well-researched content that educates and informs. Whether breaking down complex financial concepts or analyzing the latest market movements, my goal is to make finance accessible and engaging for a wide audience.
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