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.

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.

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.

As a result, those who purchased during that period are still in profit despite the recent decline and may “have decided to sell while they feel they still have the opportunity to enjoy a profit.”

Meanwhile, on-chain activity volume increased, with 4-hour candles showing notable price compression around the $2,241 level. Santiment emphasized that more transactions generate more Profit and Loss (P&L) realization events and that even modest individual profits elevate network-level total volumes.