Ethereum (ETH) has now erased nearly all of the gains it posted earlier this month after facing renewed selling pressure across the market.
Its latest weekly sell signal has also raised concerns that another sharp corrective phase, similar to previous declines, could be developing.
Three Major ETH Downside Targets
Crypto analyst Ali Martinez flagged that a new weekly TD Sequential sell signal has appeared for Ethereum. The indicator has accurately predicted several major ETH moves over the past year, such as buy signals on April 14 and June 16, 2025, which were followed by rallies of 87% and 134%, respectively. Martinez also pointed to a sell signal on August 25, 2025, that “accurately timed” a 63% correction.
According to the analyst, if selling pressure increases, Ethereum could decline toward short-term support at $1,900, followed by mid-term and long-term downside targets at $1,565 and $1,090. He added that the $1,071 level, located near the bottom of a broader channel, appears to be a strong potential buying zone for Ethereum.
Santiment reported that Ethereum recorded its highest network realized profits in three weeks, as traders realized nearly $74.58 million in profits despite ETH’s correction. According to the on-chain analytics platform, the spike in realized profits was largely driven by holders who accumulated Ethereum earlier this year at much lower prices and are still selling at a profit during the recent decline.
The firm noted that ETH traded below the $2,000 level for much of February and March, a period when some traders continued accumulating despite broader market uncertainty and geopolitical concerns. Many of those wallets remain in profit even after the recent pullback and are now taking gains. The platform also highlighted increased on-chain transaction activity and price compression near the $2,240 level on four-hour charts, suggesting high distribution activity.
Higher transaction volume can lead to larger realized profit totals across the network, even when individual gains remain relatively modest.
Four Straight Days of Withdrawals
At the same time, US spot Ethereum ETFs have continued to see capital leaving the market over the past several days. Data compiled by SoSoValue revealed that these investment vehicles recorded four consecutive days of outflows this week. The funds saw $17 million in outflows on May 11, followed by a sharp $130.6 million withdrawal on May 12, which was the largest daily outflow level since March.
Outflows continued with $36.3 million on May 13 and another $5.65 million on May 14.
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