Ethereum TD Sequential Prints “9” Buy Signal as Exchange Reserves Hit New Lows

Ethereum's 3-day chart has printed a TD Sequential "9" buy signal following a decline from $2,300 to $1,600, suggesting potential seller exhaustion. Simultaneously, ETH exchange reserves across centralized platforms have reached new lows, indicating reduced selling pressure and potentially supporting a bounce from the $1,600 support level.

The TD Sequential indicator is a technical analysis tool that counts price closes to identify potential exhaustion patterns. A "9" signal represents the ninth consecutive candle in a specific formation and historically precedes short-term reversals or consolidation phases. Ethereum's emergence of this signal after a $700 decline from recent highs suggests retail and institutional sellers may be losing momentum. However, technical analysts emphasize that a "9" print does not guarantee a reversal—it merely indicates heightened probability of a directional change.

The declining exchange reserves metric adds credibility to the bullish setup. When cryptocurrencies leave exchange wallets, it typically signals conviction from holders who move assets to self-custody, reducing available supply for sale. This behavior often precedes price rebounds as selling pressure diminishes. The combination of technical exhaustion signals and on-chain data showing lower exchange balances creates a converging bullish thesis that resonates with traders using multiple analytical frameworks.

For Ethereum investors, this setup presents a tactical opportunity but requires careful risk management. The $1,600 support zone becomes critical—a breakdown below this level would invalidate the buy signal and potentially extend losses. Conversely, a sustained hold above $1,600 with volume confirmation could trigger a recovery toward $2,000 or higher. Traders should monitor whether institutional capital returns to exchanges (suggesting renewed selling) or continues withdrawing (supporting the bullish narrative).

Looking ahead, the next 3-7 days will determine whether this signal generates legitimate upside or fails to materialize. Key catalysts include macro sentiment, Bitcoin price action, and any significant technical break of $1,600.

• →TD Sequential "9" signal indicates potential seller exhaustion but does not confirm a full trend reversal
• →Ethereum exchange reserves at new lows suggest reduced selling pressure from institutional and retail holders
• →The $1,600 support level is critical for bulls to defend any bounce attempt
• →Converging technical and on-chain signals create a bullish short-term setup with elevated tactical opportunity
• →Breakdown below $1,600 would invalidate the buy signal and extend downtrend momentum