Bearish signals for Ethereum from the TD Sequential: but is it enough for a forecast?

Yesterday a new bearish signal emerged regarding the price of Ethereum.

This is the TD Sequential indicator, which in the past seems to have been accurate in predicting ETH trends.

However, a single signal might not be enough to actually trigger a bearish phase.

The TD Sequential

The TD Sequential indicator (Tom DeMark Sequential) is a technical analysis tool developed by Tom DeMark in the 1990s and used for decades in short-term trading.

It is used mainly to identify trend exhaustion points and potential trend reversals.

It consists of two successive phases.

The first is the so-called setup, which analyzes momentum and tries to identify a sequence of positive or negative closes.

If at a certain point, after a certain sequence, a momentum reversal occurs, the second phase, called the countdown, is triggered.

It therefore only works if there is a sequence followed by a momentum reversal, although to be honest it is not always very precise.

For example, if there are several consecutive days with rising prices, when the momentum reversal then arrives, a decline is expected in the following days.

However, since it is not infallible, it works better if combined with other tools, also because it can give false signals in highly volatile or strongly directional markets.

Moreover, its use requires a certain amount of patience.

Ethereum

According to the analyst Ali Charts, last week there was a momentum reversal on the price of Ethereum like the classic TD Sequential ones mentioned above.

The hypothesis, therefore, is that the price trend of Ethereum is entering a new corrective phase.

The targets identified by Ali Charts are $1,900 in the short term, $1,565 in the medium term, and $1,090 in the long term.

However, these are three very bearish targets, not shared by other analysts.

In fact, in recent times there have already been two similar occasions on the daily timeframe.

The first saw a momentum reversal on March 17, but with the price of ETH then falling only from more than $2,300 to less than $2,000.

The second occurred on April 14, with the price of ETH then falling from more than $2,400 to less than $2,300.

However, on the daily timeframe chart a new momentum reversal is not yet visible.

It can instead be seen on the weekly timeframe, but in this case only three of the last four times it happened did the price actually fall afterwards. In fact, at the beginning of June 2025 there was a momentum reversal, but the price then only fell for a single day from $2,660 to $2,110, only to resume rising the following day.

The other three times when the TD Sequential instead turned out to be correct, the drop was respectively -48%, -66% and -65% over a period of about four or five months.

Other forecasts

There are also other bearish forecasts regarding the price trend of Ethereum, both for the short and the medium term.

In the short term, the circulating hypothesis is that it could end up falling below $2,200, perhaps even pushing below $2,150.

This is not a hypothesis shared by everyone, but it is currently the most popular one.

Moreover, the level identified by Ali Charts for the short term, $1,900, is also shared by other forecasts, though for the short-to-medium term.

It is instead much more difficult to make medium-term forecasts, also because below $1,900 there is no consensus.

It should be noted that starting from mid-March a clear rebound attempt had indeed begun, but this now seems to have already broken down starting from the second half of April.

It should be remembered, however, that at times like this it is Bitcoin that calls the shots in the crypto markets, so much so that if the BTC mini-rally does not end, it could also drag Ethereum and some altcoins along with it.

In other words, even if the consensus on the short-to-medium term price trend of Ethereum is negative, there may be a chance that Bitcoin could instead push it upward for a while longer if the current trend continues.

The fact is that around $2,000 there were strong ETH purchases in recent months by whales, which have not yet been followed by equivalent sales. This suggests that perhaps the forecasts this time may not turn out to be particularly accurate.