Ethereum's latest rebound has run into resistance at the channel top, and crypto analyst Ali Charts warns that previous attempts to break above this area have failed repeatedly. The TD Sequential indicator now flashes a sell signal, suggesting the upward momentum may be exhausting after a sustained rise.
TD Sequential Triggered, First Support at $1,770
Ali Charts underscored the risk: "If the upward move fails to hold, ETH could first sweep liquidity above recent highs but may turn lower toward $1,770 and $1,700, eventually even $1,505." Market participants view $1,770 as the initial defense line; a break below would shift focus to $1,700. The sell signal still needs confirmation through a clear rejection and follow-through. However, a decisive move above the channel would invalidate the bearish outlook.
Short-Term Five-Wave Structure vs. Broader Trend Caution
On the 12-hour chart, Ethereum's recovery from late June looks strong, but analyst TraderJBx argues the broader market structure still allows for one more leg lower. He noted ETH might temporarily push above recent highs to attract buyers, only to reverse back toward the $1,505 "equal lows" zone.
The short-term chart shows a five-wave advance from the bottom, which typically supports further upside after a corrective pullback. Under that scenario, ETH could dip to the $1,700-$1,760 range before resuming its climb above $2,000. Yet the wider trend remains cautious: the June 6 and June 26 lows occurred at nearly the same price, forming classic corrective patterns that increase the probability of an inverted flat correction. If that pattern plays out, ETH could briefly spike above $1,850, trapping late buyers, then reverse downward.
$2,000 as the Trend-Confirming Level
Analysts agree that only a sustained daily close above $2,000 would negate the bearish case and support a larger relief rally. Until then, the current advance is viewed more as a liquidity grab than a confirmed trend shift.
| Key Level | Significance |
|---|---|
| $1,770 | First support, buyer defense zone |
| $1,700 | Next downside target |
| $1,505 | Equal-lows zone, key bearish target |
| $1,850 | Liquidity sweep, possible reversal |
| $2,000 | Breakout level to confirm uptrend |