Ethereum TD series issues “9” buy signal as exchange hits new low
TLDR
After the 3-day chart of Ethereum dropped from $2,300 to $1,600, the TD series posted a “9” buy signal.
The TD series signal indicates the seller's weakness but does not guarantee a complete trend reversal.
CryptoQuant data shows that ETH exchange rates on all centralized platforms continue to be low.
Bulls should defend the $1,600 support zone for ETH to target a recovery to the $1,800–$1,950 range.
Ethereum's 3-day chart posted a TD series of “9” buy signals amid price declines above $2,300 to near $1,600.
The technical pattern, which tracks nine consecutive bearish candles, suggests bearish bearishness at current levels.
Meanwhile, on-chain data from CryptoQuant shows that currency reserves on centralized platforms are significantly lower. Together, the two data sets present a short-term price recovery scenario in ETH.
The TD series flags a possible trend failure around $1,600
Ethereum has been under constant selling pressure in recent weeks, creating a clear series of low highs and low lows.
The bearishness has extended, with the price dropping from the $2,300 range to the $1,600 zone by about 30%. That move reflects a broader bearish sentiment in the crypto market during this period.
The TD series indicator works by counting nine consecutive candles that close below four candles each. When the count reaches nine, the signal suggests that the current trend may be losing strength.
Crypto analyst Ali Charts showed this development on X, stating that a small bullish candle appeared immediately after the signal was published.
According to Ali Charts, if bulls hold the $1,600 support zone, ETH may recover to the $1,800-$1,950 resistance range.
That area represents the next logical ceiling based on prior price action. Failure to hold support, however, could continue the broader downward trend.
Reverse order of TD is not guaranteed. Rather, it indicates a point at which trend momentum may be weakening.
Traders typically wait for confirmation from continuation candles before entering a position solely on the signal.
Currency deduction rejected points of sale
A researcher on the chain, Ray Researcher, highlighted a different but complementary set of data. Based on CryptoQuant's “Ethereum Exchange Reserve – All Exchanges” metric, ETH reserves on central exchanges continue to decline after recovering slightly. That brief flurry saw some retail investors move coins to exchanges to restructure their portfolios.
A decline in renewed currency reserves indicates that the amount of cash on sale is shrinking on the order book. When holders withdraw ETH to private wallets instead of exchanging accounts, it reduces the immediate availability for sale. That variable will reduce inflation over time.
The dominant outflow pattern seen in the data removes some of the selling pressure placed on the exchange order book.
Ray Researcher cites this as clear evidence that most current owners prefer to store rather than sell at current price levels. That's because a bearish change in behavior changes supply dynamics around the $1,600 support level.
Taken together, the TD series signal and the bearish trend of the exchange suggest that the $1,600 zone provides meaningful technical and up-chain support.
Whether ETH can continue its recovery will depend on broader market conditions and the current levels of the buyer.
