Ethereum has surrendered most of the gains it recorded earlier this month as renewed market weakness triggered another wave of selling pressure.
A fresh weekly sell signal is now raising concerns among traders that ETH could be entering another significant correction similar to previous downturns.
Analyst Identifies Major Ethereum Support Levels
Crypto analyst Ali Martinez revealed that Ethereum has printed a new weekly TD Sequential sell signal, an indicator that has accurately identified several major ETH reversals over the past year.
According to Martinez, previous buy signals generated on April 14 and June 16, 2025, were followed by rallies of 87% and 134% respectively. He also pointed to a sell signal from August 25, 2025, which correctly preceded a 63% market decline.
Based on the latest signal, Martinez warned that Ethereum could face deeper losses if bearish momentum intensifies. He highlighted $1,900 as the first major support level, followed by additional downside targets near $1,565 and $1,090.
The analyst added that the $1,071 area, positioned close to the lower boundary of a broader trading channel, could emerge as a strong long term accumulation zone for ETH buyers.
Profit Taking Activity Increases on Ethereum Network
Blockchain analytics platform Santiment reported that Ethereum recently recorded its highest realized profits in three weeks, with traders locking in approximately $74.58 million in gains despite the ongoing correction.
The data suggests many investors who accumulated ETH earlier in the year at significantly lower prices are now taking profits during the latest pullback.
Santiment noted that Ethereum traded below $2,000 throughout much of February and March, a period when some market participants continued buying despite broader economic uncertainty and geopolitical tensions.
Many of those holders remain profitable even after ETH’s recent decline and are now beginning to reduce exposure.
The analytics firm also observed rising on chain transaction activity alongside price compression near the $2,240 region on four hour charts, a pattern that may indicate elevated distribution activity across the network.
Higher transaction volume often leads to increased realized profits, even when individual trade gains are relatively small.
Ethereum ETFs Extend Outflow Streak
At the same time, US spot Ethereum exchange traded funds continue experiencing capital outflows.
Data from SoSoValue showed Ethereum ETFs recorded four consecutive days of withdrawals this week.
The funds posted $17 million in outflows on May 11 before seeing a much larger $130.6 million exit on May 12, marking the biggest single day withdrawal level since March.
Negative flows continued with another $36.3 million leaving the market on May 13, followed by an additional $5.65 million in outflows on May 14.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
