ETH Could Drop to $1.7K as Sell Signal Gets Flagged: Analyst

Renowned cryptocurrency trader and analyst Ali revealed in an X post today that a sell signal has been triggered on the 3-day chart for Ethereum (ETH). In the post, the analyst noted that the TD Sequential indicator flagged a sell signal for the leading altcoin.

#Ethereum | TD Sequential is flagging a sell signal on the $ETH 3-day chart! This comes as #ETH tests a major resistance zone between $2,000 and $2,150, aligning with the x-axis of an ascending triangle pattern.

A pullback from this resistance level could lead to a dip toward… pic.twitter.com/oKGCT6tVrj

— Ali (@ali_charts) November 15, 2023

This comes as ETH tests a major resistance zone between $2,000 and $2,150. Ali mentioned that this zone also aligns with the x-axis of an ascending triangle pattern present on ETH’s 3-day chart.

Should the cryptocurrency pull back from this barrier, ETH could dip to as low as the hypotenuse of the triangle pattern, which is around $1,700, predicted the analyst. This potential retracement will then set the stage for a possible continuation of ETH’s uptrend.

The analyst’s bearish thesis, however, may be negated if ETH achieves a sustained 3-day candlestick close above the $2,150 threshold.

Meanwhile, the cryptocurrency market tracking website CoinMarketCap indicated that the altcoin was trading below the psychological $2,000 mark. At press time, ETH’s price stood at $1,982.04. This was after the cryptocurrency suffered a 3.77% drop in price over the past 24 hours.

Despite the recent decrease in price, ETH’s weekly performance was still comfortably in the green. CoinMarketCap data showed ETH was up more than 5% over the past 7 days.

The largest altcoin in terms of market cap was also trading at its 24-hour low. Meanwhile, its peak for the same period stood at $2,116.01.

Daily chart for ETH/USDT (Source: TradingView)

From a technical standpoint, a significant bearish technical flag was on the verge of being triggered. At press time, the Moving Average Convergence Divergence (MACD) line was attempting to cross below the MACD Signal line.

Should these two lines cross, it may signal a continuation of ETH’s bearish trend in the next 24-48 hours. If this flag is confirmed and validated, ETH may fall below the $1,945 support level and drop to the subsequent mark of $1,830.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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