Ethereum faces renewed selling pressure, erasing most of its recent gains. A prominent sell signal suggests the potential for a significant correction, with analysts outlining downside targets near $1,900, $1,565, and $1,090. On-chain data shows traders realized nearly $74.6 million in profits during the decline, while U.S. spot Ethereum ETFs recorded four consecutive days of outflows this week.
Ethereum has nearly erased all gains from earlier this month amid renewed market selling pressure. Its latest weekly sell signal has raised concerns a sharp corrective phase could be developing.
Crypto analyst Ali Martinez flagged a new weekly TD Sequential sell signal for Ethereum. The indicator accurately predicted several major moves over the past year, including a sell signal that “accurately timed” a 63% correction.
According to Martinez, if selling pressure increases, Ethereum could decline toward support at $1,900. Mid-term and long-term downside targets are at $1,565 and $1,090, respectively.
The analyst added the $1,071 level appears to be a strong potential buying zone. This level is located near the bottom of a broader channel.
Santiment reported Ethereum recorded its highest network realized profits in three weeks. Traders realized nearly $74.6 million in profits despite the ongoing correction.
The spike was largely driven by holders who accumulated ETH at lower prices earlier this year. These wallets are now taking gains during the recent price decline.
U.S. spot Ethereum ETFs have seen capital leaving the market for several days. Data compiled by SoSoValue revealed the funds recorded four consecutive days of outflows this week.
The products saw a sharp $130.6 million withdrawal on May 12, the largest daily outflow since March. Outflows continued with $36.3 million on May 13 and another $5.65 million on May 14.
