Ethereum is at risk of a steep correction as techs anticipate an increase in selling pressure. With more than 25 predictions coming true, The Tom DeMark (TD) indicator offers a sell signal on the leading altcoin daily chart.
Altcoin investors prepare to take profits on Ethereum after rally
Ethereum is on the verge of a correction after seeing significant entries over the past week. On-chain data shows that ETH is positioned at a stable support level. According to experts, this point leads to a significant increase in profit taking.
The leading altcoin has gained 25% since last week. That gain had exceeded 50% at one point. Ethereum price briefly rallied to $1,650 from $1,180 on July 15. It is currently trading at $1,523.73 with a slight correction. However, ETH’s bullish action is weakening as it shows signs of technical exhaustion. The Tom DeMark (TD) indicator offers sell signals on Ethereum’s daily chart…
An increase in profit taking will push ETH to these levels
The bearish pattern developed as a green nine candlestick. Increasing selling pressure caused the pessimistic outlook. This suggests a possible 1-4 day candlestick retracement. The transaction history shows that Ethereum has formed a significant demand wall at $1,550. More than 586,000 addresses have previously bought around 5.1 million ETH at this price level. Therefore, the bearish thesis will be confirmed if investors take profits and potentially send ETH below the $1,550 support level.
Failure to hold above this vital demand zone will trigger a 15% correction towards the 50-day moving average towards around $1,300. The Tom DeMark indicator shows that bulls need to make a 5% move to reverse this.
Altcoin bulls need to break above this level
According to the indicator, Ethereum will need a firm close above $1,650 to potentially invalidate the bearish thesis. Breaking this resistance level will help prices push higher towards the next major hurdle at $1,800. Here 1.14 million addresses currently hold more than 800,000 ETH.
Attention on this date in Ethereum
Ethereum 2.0 or Merge is an important technical update that will migrate the Ethereum network from PoW to Pos mechanism. Currently, the date set for the merge is September 19th. Today, the total stake is at 13.14 million, through a total of over 410,000 different validators.
Meanwhile, there are analysts who support the predictions of The Tom DeMark (TD) indicator. As we quoted as Kriptokoin.com, Michaël van de Poppe said that he will look for a short position in Ethereum. According to the analyst, $1,570 will be an important level that the bulls need to protect on the ETH chart.
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