TLDR:
- Ethereum’s 3-day chart has printed a TD Sequential “9” buy signal after a drop from $2,300 to $1,600.
- The TD Sequential signal indicates potential seller exhaustion but does not confirm a full trend reversal.
- CryptoQuant data shows ETH exchange reserves across all centralized platforms continue trending lower.
- Bulls must defend the $1,600 support zone for ETH to target a recovery toward the $1,800–$1,950 range.
Ethereum’s 3-day chart has printed a TD Sequential “9” buy signal amid a sustained price decline from above $2,300 to near $1,600.
The technical pattern, which tracks nine consecutive bearish candles, points to potential seller exhaustion at current levels.
Meanwhile, on-chain data from CryptoQuant shows exchange reserves across centralized platforms trending sharply lower. Together, the two datasets present a case for a short-term price recovery in ETH.
TD Sequential Flags Possible Trend Exhaustion Near $1,600
Ethereum has been under consistent selling pressure over recent weeks, forming a clear series of lower highs and lower lows.
The decline has been steep, with prices dropping roughly 30% from the $2,300 range to the $1,600 zone. That move reflects broad bearish sentiment across the crypto market during this period.
The TD Sequential indicator works by counting nine consecutive candles that each close lower than four candles prior. When the count reaches nine, the signal suggests the existing trend may be losing strength.
Crypto analyst Ali Charts flagged this development on X, noting a small bullish candle has appeared immediately after the signal printed.
According to Ali Charts, if bulls manage to hold the $1,600 support zone, ETH could recover toward the $1,800–$1,950 resistance range.
That area represents the next logical ceiling based on prior price action. A failure to hold support, however, would likely resume the broader downtrend.
The TD Sequential does not guarantee a reversal. Instead, it marks a point where trend momentum may be weakening.
Traders typically wait for confirmation from subsequent candles before entering positions based on the signal alone.
Exchange Reserve Decline Points to Reduced Selling Supply
On-chain researcher Rei Researcher highlighted a separate but complementary dataset. Based on CryptoQuant’s “Ethereum Exchange Reserve — All Exchanges” metric, ETH reserves across centralized exchanges continue declining after a brief upward recovery. That brief uptick saw some retail investors move coins onto exchanges to restructure their portfolios.
The renewed decline in exchange reserves indicates that available sell-side liquidity is shrinking on order books. When holders withdraw ETH to personal wallets rather than exchange accounts, it reduces the immediate supply available for sale. That dynamic tends to ease downward pressure on price over time.
The dominant outflow pattern seen in the data neutralizes a portion of potential sell pressure sitting on exchange order books.
Rei Researcher noted this as clear evidence that most current holders prefer storage over selling at present price levels. That shift in holder behavior matters because it changes the supply dynamics around the $1,600 support level.
Taken together, the TD Sequential signal and the exchange reserve trend suggest the $1,600 zone carries meaningful technical and on-chain support.
Whether ETH can sustain a recovery remains contingent on broader market conditions and buyer follow-through at current levels.
