Ethereum TD Sequential Flashes Sell Signal – Is A New 50% Corrective Phase Starting?

As the market reacts to the latest crypto legislation, Ethereum (ETH) is flashing warning signs after a fresh technical sell signal emerged for the first time in months and a spike in on‑chain realized profits.

Ethereum Risks New Leg Down After Key Sell Signal

On Thursday, Ethereum jumped 3.5 % intraday before hitting its three-day $2,320 resistance area. The move follows the advancement of the crypto market structure bill, known as the CLARITY Act, to a full Senate vote after a 15-9 bipartisan vote during the Senate Banking Committee’s long-awaited markup session.

The King of altcoins has been moving sideways between $2,200 and $2,400 over the past month, which some have called a “no-trade zone.” While many analysts suggest that a breakout above the upper boundary is coming, analyst Ali Martinez has warned that Ethereum may be close to a major correction.

In an X post, the market observer highlighted that a new sell signal has emerged on ETH’s weekly chart for the first time in nine months. He explained that the TD Sequential indicator has been highly precise in anticipating the altcoin’s trends since April 2025, with every signal on the weekly timeframe validated by significant price action over the past year.

ETH flashes a sell signal in the weekly chart. Source: Ali Charts on X

In mid-April and mid-June 2025, the key indicator flashed two buy signals, resulting in multi-week rallies of 87% and 134%, respectively. Meanwhile, it flashed a sell signal in late August 2025, which accurately timed a 63% correction from its all-time high (ATH) levels toward the February lows.

Now, the latest weekly signal “suggests Ethereum is entering another corrective phase,” which could push the price to new local lows. If selling pressure accelerates, Martinez shared an initial target of $1,900, followed by potential mid- and long-term targets of $1,565 and $1,090.

Time To Turn Cautious Or Bearish?