Ethereum price drops 30% to $1,600: TD buy signal
Ethereum price has fallen nearly 30%, sliding from around $2,300 to $1,600 amid a broadly bearish crypto market. Traders are watching the TD Sequential indicator on the 3-day chart, where a “9” buy signal has appeared, suggesting the selloff momentum may be starting to exhaust.
Analyst Ali Charts notes the signal was followed by a small bullish candle. The key level is $1,600 support. If buyers defend it, the next recovery zone is projected at roughly $1,800 to $1,950. If support breaks, the downtrend could resume with renewed pressure.
On-chain data from CryptoQuant (via Rei Researcher) adds a second layer of confirmation: total ETH reserves on centralized exchanges have resumed declining after a brief uptick. This can indicate tighter available supply and reduced immediate selling pressure if investors withdraw ETH to personal wallets. Still, the article cautions that any rebound depends on broader market conditions and sustained buy demand.
Keyword focus: Ethereum price dynamics are being driven by a mix of technical setup (TD Sequential) and exchange-reserve trends (CryptoQuant).
Neutral
The article is built around a short-term technical improvement inside a broader downtrend. Ethereum price drops nearly 30% and the market tone is bearish, but the TD Sequential “9” buy signal on the 3-day chart plus a follow-up bullish candle introduces a near-term relief-rally possibility—especially if $1,600 holds. However, the setup is not a confirmed reversal; TD Sequential typically needs follow-through from subsequent candles.
At the same time, the on-chain takeaway is supportive but not automatically bullish: CryptoQuant’s data (via Rei Researcher) shows exchange ETH reserves are declining, which can reduce immediate sell pressure. This is similar to past episodes where reduced exchange supply coincided with stabilization after sharp selloffs.
Trading implications: in the short term, traders may tighten risk around $1,600 and look for bounce confirmation toward $1,800–$1,950. In the longer term, sustained upside would require broader market conditions to improve and buyers to keep defending support; otherwise, a support break could quickly turn the technical “buy signal” into another leg down. Net effect: mildly supportive near-term, but still vulnerable—hence neutral.