Ethereum has strengthened by more than 30% over the past few weeks and approached the $2,000 threshold. However, at this level, a sell signal from the TD Sequential indicator appeared, suggesting a possible exhaustion of the upward trend. The technical outlook could fundamentally change with the vote on the American CLARITY Act.
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Resistance at $2,000 halted the growth wave
Ethereum’s price climbed from lows near $1,500 almost to the $2,000 threshold, where it began losing momentum. It was precisely in this area that the TD Sequential indicator switched from a buy to a sell signal. The same tool had previously captured the beginning of the more than thirty percent rally quite accurately, which is why traders are now monitoring the risk of a short-term correction or consolidation.
At the time of the original analysis, Ethereum was trading around $1,869 and was moving near another significant technical area at $1,858. However, the indicator itself does not represent a certain prediction of future developments. TD Sequential merely alerts to a possible loss of strength in the current trend, and its signals should be assessed together with trading volumes, on-chain data, and the broader market situation.
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Regulatory decision may overshadow technical signals
Ethereum’s performance remains weaker than bitcoin’s despite its recent growth. Since the beginning of the year, ETH has lost approximately 36.6%, while bitcoin has weakened by roughly 27%. Ethereum also remains significantly below its previous price levels, indicating that the recent recovery does not by itself confirm the end of the long-term downward trend.
A key catalyst could be the vote on the CLARITY Act, from which part of the market expects clearer rules for the American cryptocurrency sector and easier entry of institutional capital. Potential approval could support new demand and diminish the significance of the current sell signal. For investors using the XTB platform, the market’s reaction will be crucial—if the vote fails to meet expectations, Ethereum may face significant profit-taking after its sharp rise.
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