Ethereum’s recent rally from July lows is facing a technical sell signal from the TD Sequential indicator, even as institutional ETF inflows continue to support the asset. Market analyst Ali Martinez noted on X that the same tool which correctly flagged a buy opportunity near the $1,500 region has now issued a fresh “9” sell count, suggesting that the upward momentum may be exhausting. Following that earlier buy signal, Ethereum surged approximately 31.5% to near $2,000, but price failed to sustain gains above the critical $1,900 resistance.
Currently, Ethereum is trading around $1,885, having dropped below the 20-period and 50-period Exponential Moving Averages on the four-hour chart. Immediate support is holding near $1,880, while the 100-period EMA at $1,878 offers further cushion. A break lower could expose the 200-period EMA near $1,845. Daily volume fell 26.49% to $8.33 billion, reflecting weaker participation as buyers retreated.
While the technical outlook darkens, spot Ethereum ETFs recorded $12.8 million in net inflows during the latest reporting period, part of a broader positive trend. Combined crypto ETF inflows reached $251.88 million, with Bitcoin ETFs attracting $233.1 million and XRP ETFs adding nearly $5.98 million. Solana and HYPE ETFs saw no change. These flows indicate that institutional appetite for regulated crypto exposure remains steady, providing a potential buffer against bearish price action.
Several analysts are warning of further downside. Crypto Lens sees Ethereum trapped between $1,860 and $1,955 with a potential decline to the $1,400–$900 zone if momentum fails. Crypto Rover highlighted the persistent weakness in the ETH/BTC pair, which continues to print lower highs and lower lows, and could drop below 0.0235 to new multi-year lows. Open interest in futures has also dipped, signaling trader caution.
