Ethereum’s Potential Pullback Looms; TD Sequential Signals

Ethereum’s recent upward momentum may be weakening. Technical indicators suggest a potential pullback in the short term. A sell signal from the TD Sequential indicator has caught analysts’ attention. ETH is currently trading just above a key support level. This follows a brief rally. This warning of a potential pullback warrants careful market observation.

TD Sequential Indicator Flashes Sell Signal

Analyst @ali_charts shared a chart on May 17, 2025. It showed a completed “9” count on the TD Sequential indicator. This was observed on the 3-day chart for Ethereum. This signal is typically associated with trend exhaustion. It may indicate a local top has formed. This warning comes after Ethereum’s recent rise. ETH climbed from under $1,800 earlier in May. It reached a high of $2,648.68 before a 2.6% decline. The TD Sequential “9” suggests the bullish trend might be losing strength. This could lead to a potential pullback if selling pressure increases.

Fibonacci Levels as Key Price Zones

The analyst’s chart also highlighted Fibonacci retracement levels. These serve as important price zones. Ethereum briefly surpassed the 1.272 Fibonacci extension level. This was at $2,746.63 before it retreated. A bearish candle now sits just above the 0.786 retracement level. This is at $2,403.81. This suggests the recent high may act as a resistance area. The combination of the TD Sequential “9” and rejection from Fibonacci extension levels is significant. It indicates that the bullish trend is weakening. Strong resistance in this price range could impact Ethereum’s ability. It may struggle to sustain its recent momentum. This reinforces the likelihood of a potential pullback.

Price Movement Stalls After Brief Rebound

As of press time, Ethereum was trading at $2,509.12. This reflected a 1.15% increase over the past 24 hours. The asset fluctuated between an intraday low of $2,449.07. The high was $2,527.41. This modest gain followed a relatively flat overnight session. Price action consolidated around $2,482. During the mid-morning session, ETH saw some buying activity. This pushed the price above the $2,500 level. However, red trading zones remain dominant on the short-term chart. This suggests ongoing selling pressure. Or, it could indicate a lack of firm bullish conviction. Ethereum remains 48.68% below its all-time high of $4,891.70. This was recorded on November 16, 2021. The current price movement is closely monitored. Traders watch to see if $2,500 will hold as firm support. Or, if ETH is poised for further decline due to the signaled potential pullback.

Key Support and Resistance Levels in Focus

The price range of $2,500 to $2,530 is critical. Market participants are watching this zone closely. It will likely dictate important short-term movements. The $2,530 level is forming as resistance. Meanwhile, $2,500 could act as important support. This is especially true given Ethereum’s recent gains. Trading levels are showing a moderate pace. This means the market has not yet decided its next direction. In the near future, it will become clearer. We will see if Ethereum stabilizes at current levels. Or, if its reaction to these technical signals continues. A break below $2,500 could confirm the potential pullback. This might lead to further downside towards the $2,403.81 Fibonacci level. Conversely, a strong break above $2,530 could invalidate the sell signal. It might signal a continuation of the uptrend. Investors should monitor volume and further candle formations. These will provide additional clues.