- Ethereum’s TD Sequential buy signal emerges as prices dip below $4,000, hinting at seller exhaustion after a 9% weekly slide.
- Massive $1.6B liquidations and U.S. shutdown fears fuel the downturn, but key support at $3,993 could trigger a rebound.
- Despite September woes, analysts hold firm on $5K ETH year-end target amid strong network fundamentals.
In the relentless churn of cryptocurrency markets, where macroeconomic headwinds like looming U.S. government shutdown risks and impending PCE inflation data have battered investor sentiment, a technical beacon has flickered to life for Ethereum (ETH). Renowned analyst Ali Martinez, known on X as @AliCharts, spotlighted a fresh TD Sequential buy signal on the ETH chart today, suggesting the smart contract king’s downtrend might be nearing exhaustion just as prices test critical support levels below $4,000.
For the uninitiated, the TD Sequential—crafted by legendary technical strategist Tom DeMark—is a powerhouse indicator that tallies consecutive candle closes to pinpoint trend fatigue. A “13” buy setup, like the one flashing now on ETH’s daily timeframe, signals that sellers may be overextended after a prolonged sell-off. It’s not a crystal ball, but historically, these setups have preceded sharp reversals, offering savvy traders an edge in spotting bottoms. Martinez’s chart, shared amid ETH’s latest plunge, shows the indicator’s red arrow piercing upward from a cluster of bearish bars, coinciding with September’s volatility spike.
Context is king in crypto, and Ethereum’s story this month is one of faded summer euphoria. After surging 75% against Bitcoin in Q3, ETH has surrendered those gains, tumbling over 9% in the past week alone to hover around $3,946 as of this writing. The catalyst? A perfect storm: over $1.6 billion in liquidations across the board on September 21—the largest in 2025—fueled by leveraged positions unwinding in a risk-off environment. Bitcoin and XRP have followed suit, with ETH leading the descent during Asian hours today amid shutdown odds hitting record highs. Options expiry looming tomorrow adds another layer of chop, as traders square positions ahead of the Fed’s favored inflation gauge.
Yet, this buy signal arrives at a pivotal juncture. ETH is probing a multi-month consolidation zone after 1,127 days of sideways action, with key support clustered between $3,993 and $4,081. A daily close above $4,000 could validate the reversal, potentially catapulting prices toward $4,200 resistance and reigniting momentum. Analysts remain cautiously optimistic, pegging a $5,000 year-end target despite September’s slump, buoyed by Ethereum’s robust fundamentals like ongoing layer-2 scaling and staking yields topping 4%.Of course, macro risks loom large—PCE data could dash rate-cut hopes, prolonging the pain. But for contrarian bulls, the TD Sequential whisper is a call to action: accumulation time? As always in crypto, confirmation via volume and higher lows will be crucial. Ethereum’s resilience has been tested before; this signal might just be the spark that reignites its fire.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
