Ethereum (ETH) is showing potential warning signals as new cryptocurrency laws impact the market. This comes after a recent technical indicator suggested a possible sell-off – something that hasn’t happened in months – and a notable increase in profits being taken from the network.
Ethereum Risks New Leg Down After Key Sell Signal
As a crypto investor, I was happy to see Ethereum jump over 3.5% today. It almost hit a resistance level around $2,320. This positive move seems to be driven by some good news – the CLARITY Act, a bill aimed at providing more clarity for crypto regulations, passed a key vote in the Senate Banking Committee with bipartisan support. It’s now heading for a full Senate vote, which is a big step forward for the industry.
Ethereum, often called the leading alternative cryptocurrency, has been trading in a narrow range between $2,200 and $2,400 for the last month, leading some to believe there’s no clear opportunity to profit from its movements. Although many experts predict a price increase beyond $2,400, analyst Ali Martinez cautions that a significant price drop could be coming soon.
A market analyst recently pointed out a potential selling opportunity for Ethereum (ETH). According to a post on X, a key indicator called the TD Sequential is signaling a possible downturn on ETH’s weekly chart – something it hasn’t done in nine months. This indicator has accurately predicted ETH’s price movements since April 2025, with each signal closely followed by a notable price change over the last year.
In April and June of 2025, a particular indicator gave buy signals that led to significant price increases of 87% and 134% over several weeks. Later, in late August 2025, it signaled a sell, correctly predicting a 63% drop in price from its highest point back to levels seen in February.
Recent market signals indicate Ethereum might be starting a new downtrend, potentially leading to lower prices. Analyst Martinez predicts an initial drop to $1,900, with further declines possible to $1,565 and eventually $1,090 if selling increases.
Time To Turn Cautious Or Bearish?
According to blockchain data firm Santiment, Ethereum investors recently booked $74.58 million in profits – the highest amount in three weeks – despite a 5.5% price drop over the last three days. While this might seem strange, Santiment suggests it doesn’t automatically mean investors should expect prices to continue falling.
According to the firm, the recent price dip in mid-May saw profits taken by investors who bought Ethereum at much lower prices. These investors had purchased Ethereum in February and March, when prices were under $2,000 due to market instability and global events.
Based on my research, people who bought during that earlier timeframe are still seeing gains, even with the recent market dip. It seems some of them are choosing to sell now, while they can still lock in a profit.
Trading activity on the blockchain went up, and the price seemed to be squeezed around $2,241 over a four-hour period. According to Santiment, increased transactions lead to more people realizing profits or losses, and even small individual gains can significantly boost overall trading volume on the network.
According to recent analysis of Ethereum trading, the firm advises investors not to panic-sell, but to be careful and wait for stronger indicators before making big moves. They suggest looking for increasing realized losses as a possible sign that the price is bottoming out, and recommend avoiding aggressive buying until the current selling pressure clearly subsides.
Read More
- USD CNY PREDICTION
- Silver Rate Forecast
- Gold Rate Forecast
- USD THB PREDICTION
- USD BRL PREDICTION
- EUR HKD PREDICTION
- GBP EUR PREDICTION
- USD KRW PREDICTION
- EUR USD PREDICTION
- USD RUB PREDICTION
2026-05-15 10:00