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Ethereum at a Crossroads: V-Shaped Recovery or Short-Term Pullback?

Ethereum at a Crossroads: V-Shaped Recovery or Short-Term Pullback?

Coindoo2025/05/21 00:01
By: Coindoo
ETH-0.19%
Ethereum at a Crossroads: V-Shaped Recovery or Short-Term Pullback? image 0

Ethereum (ETH) is showing conflicting signals as it navigates a pivotal zone. Analysts are closely watching technical and on-chain indicators to determine whether the asset is due for a short-term correction or preparing for a full-fledged rally reminiscent of the 2020–2021 cycle.

Short-Term Sell Signal: TD Sequential Indicator Flashes Warning

According to market analyst Ali Martinez, Ethereum could be headed for a brief pullback. The TD Sequential indicator has flashed a sell signal on the 3-day chart, following a strong move upward toward the $2,600 range.

“ETH could be bound for a brief correction,” Ali noted, suggesting the momentum may be fading after a strong rally.

This indicator has historically been a reliable signal for short-term trend reversals — particularly when markets are overheated.

Ethereum at a Crossroads: V-Shaped Recovery or Short-Term Pullback? image 1

Key Support at $2,400: On-Chain Data Suggests Strong Demand Zone

On-chain insights from SentoraHQ, shared by Ali, show a heavy concentration of wallet activity between $2,354 and $2,431, making $2,400 a critical support level.

  • This zone includes 6.3 million ETH held by 2.64 million addresses.
  • Ethereum is currently trading slightly above this cluster, around $2,480.

If ETH fails to hold this level, it could quickly fall to lower Fibonacci levels. But if the support holds, it may act as a springboard for another leg higher.

Ethereum at a Crossroads: V-Shaped Recovery or Short-Term Pullback? image 2

📈 Bullish Macro Structure: V-Shaped Recovery In Progress?

Adding a longer-term perspective, crypto analyst Ash believes Ethereum is undergoing a V-shaped rebound, mirroring the structure seen during the 2020–2021 cycle.

His comparison of the current weekly ETH chart to the historical rebound pattern suggests Ethereum may already be mid-recovery, and if the pattern plays out similarly, new highs could be on the horizon.

“Study the 2020–2021 cycle and you’ll know what happens next,” Ash stated confidently.

Ethereum at a Crossroads: V-Shaped Recovery or Short-Term Pullback? image 3

Final Takeaway

Ethereum’s current position is precarious but promising. Traders should watch:

  • $2,400 as a key support line.
  • Whether the TD Sequential sell signal triggers follow-through selling.
  • If the macro structure aligns with past bullish recovery phases.

Short-term volatility may shake out over-leveraged positions, but the long-term chart still looks structurally bullish. The next few days will be crucial in determining whether ETH dips before ripping — or continues marching upward without pause.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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