Ethereum’s monthly TD sequential indicator has reignited optimism after showing a bullish trigger for the first time since March 2025.
previous month buy signal With a 235% rally ahead in 2022 and a 182% rally in 2025, the latest signals are hard to ignore.
However, rather than confirming a new bull market, this indicator only suggested that Ethereum may be approaching a new macro turning point.
Broader market conditions vary from cycle to cycle, so past performance alone does not guarantee similar results.
Leverage returned as bullish conviction increased
Derivatives activity reflected new confidence as traders increased their exposure to Ethereum.
At the time of writing, Open interest rose to 11.16 billion, registering a daily increase of 13.15%, and the funding rate increased by 113.86% to 0.0129.
These numbers show that leveraged long positions expanded during the recent economic recovery rather than remaining on the sidelines.
However, the rise in leverage has also increased the risk of liquidation if Ethereum fails to maintain its recent gains.
Positive funding indicated that long traders paid a premium to hold their positions, reinforcing the bullish bias in the overall perpetual futures market.
However, the monthly TD sequential signal could not be verified using derivative data alone.
Rather, it showed that the onus was left on price action to see if speculative demand returned and buyers maintained their growing optimism.
Ethereum’s double-dip recovery faces significant resistance
Ethereum (ETH) It rebounded from a clear double bottom around $1,565 after buyers repeatedly defended that support level.
The recovery has pushed the price above $1,700 and the next technical barrier is near $1,800, but if the buying pressure continues, $2,000 will be the next major resistance.
The RSI also rose to 51.65, rising above the neutral level after rebounding from a heavily oversold situation.
This change reflects an increase in purchasing power rather than a weakening of demand.
Still, Ethereum continued to trade below key resistance zones despite regaining short-term support.
The current structure suggests that buyers have regained control after the correction.
Still, only a decisive break above $1,800 would strengthen the view that the monthly TD sequential signal is once again consistent with a broader trend reversal rather than a short-term recovery.
Liquidity Map Points to Next Goal
The 24-hour liquidation heatmap shows that leveraged positions are most concentrated around $1,740 to $1,750.
This has led to a significant liquidity cluster directly above Ethereum’s current price.
Liquidations generate additional trading activity, so markets often gravitate toward high leverage zones.
As a result, Ethereum has room for further short-term gains before facing stronger resistance near $1,800.
Meanwhile, another notable pocket of liquidity remains near $1,680-$1,650, with potential for a downside if buyers relinquish control.
The current distribution initially favored attempts to wipe out indirect liquidity.
However, the heatmap does not guarantee direction, but rather highlights areas of interest, meaning Ethereum still needed a confirmed breakout to reinforce the broader bullish thesis.
Crucially, the monthly TD sequential buy signal reinstated the long-term bullish outlook but did not confirm that Ethereum had entered a new macro uptrend.
A double-dip recovery, an improvement in the RSI, and an increase in derivatives activity supported the bullish view.
However, Ethereum will likely need to regain $1,800 before the technical structure fully aligns with the indicators.
Until then, the recovery remained constructive, but whether it is confirmed will depend not only on the historical success of the monthly signal, but also on whether buyers overcome nearby resistance.
Final summary
- Ethereum has recovered from the double dip, but the bulls have targeted the $1,800 resistance level.
- Rising leverage supported the bullish trend, but resistance still required definitive confirmation.
