Ethereum's TD Sequential lit a monthly buy signal — now the chart has to do the heavy lifting 📈

Ethereum's monthly TD Sequential indicator printed its first bullish trigger since March 2025, reviving debate over whether $ETH has reached a macro turning point. The signal carries historical weight: previous monthly buys preceded rallies of 235% in 2022 and 182% in 2025, though past performance has not consistently repeated across cycles. The indicator alone signals a potential pivot rather than confirmation of a new bull market.

Derivatives markets responded to the setup with renewed leveraged exposure. Open Interest climbed to 11.16B, a 13.15% daily increase, while Funding Rates jumped 113.86% to 0.0129. Positive funding indicated long traders paid a premium to hold positions, reinforcing a bullish bias across perpetual futures, though rising leverage also increased liquidation risk if gains failed to hold.

On the spot chart, Ethereum rebounded from a double-bottom near $1,565, where buyers repeatedly defended support, and pushed above $1,700. Technical barriers now sit at $1,800 and $2,000, respectively. The RSI climbed to 51.65, moving above the neutral line after rebounding from deeply oversold territory, signaling improving buying strength rather than weakening demand. Despite the recovery, Ethereum continued to trade below its major resistance zones.

The 24-hour Liquidation Heatmap showed the largest leveraged cluster around $1,740-$1,750, directly above current price and creating a near-term liquidity magnet. Another pocket around $1,680-$1,650 left room for downside volatility if buyers stepped aside. The current distribution favored an initial sweep of overhead liquidity, though the heatmap highlights interest zones rather than direction, leaving a decisive break above $1,800 as the key test of the monthly signal's validity.