Ethereum price action flashed a TD Sequential “9” buy signal on the 3-day chart on June 7, 2026, as exchange reserves dropped to a reported record low of 14.6 million ETH.
Analyst Ali Martinez, known as @alicharts on X, flagged the technical indicator which appeared after a sharp market correction that saw the asset fall from $2,300 to $1,600. The emergence of this signal suggests that selling momentum may be weakening while indicating potential seller exhaustion for the world’s second-largest cryptocurrency.
The TD Sequential indicator serves as a technical analysis tool designed to identify potential trend exhaustion and price reversals. A “9” buy signal suggests that selling power is reaching a limit, although it does not guarantee an immediate rebound.
Historically, similar setups have preceded rallies for Ethereum, including gains of 87% in mid-April 2025 and 134% in mid-June 2025 during weekly timeframe signals. Traders typically wait for confirmation from subsequent candles before acting on the trend exhaustion.
At the same time, the supply of Ethereum on centralized trading platforms is reaching levels not seen in roughly a decade. While the 14.6 million ETH recorded on June 7 is reported as the lowest level ever recorded, previous multi-year lows were marked throughout the year. On January 20, 2026, reserves fell to 16.
2 million tokens, an 8-year low last seen in 2016, followed by a drop to 16.3 million ETH in early February which was also comparable to 2016 levels.
Analysis of the Ethereum TD Sequential buy signal
The appearance of the Ethereum TD Sequential buy signal on a high-timeframe chart follows a period of heightened volatility. On May 19, 2026, a separate buy signal was reported near the $2,138 area on a 12-hour chart. The current 3-day signal emerged during a nearly 30% price decline, highlighting a technical shift as the market tests the critical $1,600 support zone.
Analysts are closely monitoring the $1,800 to $1,950 resistance range as a primary hurdle for any potential recovery. If bulls defend the $1,600 level, Ethereum could see a rebound toward those higher zones. However, failure to maintain this support would likely resume the broader bearish trend.
A break above the recent daily high near $1,706 and former support zones above $1,800 could eventually put the $2,000 level back into focus.
Lower exchange balances often indicate reduced immediate selling pressure as fewer tokens are available for liquidation. This trend mirrors movements seen in other major assets, as bitcoin supply on exchanges has also recently trended toward historic lows. Analysts suggest this reflects a shift toward long-term holding through decentralized finance protocols or cold storage.
Exchange reserves plummet to record lows
The steady drain of liquidity from centralized exchanges has continued throughout early 2026. In early June, tracked Ethereum reserves across major platforms including Binance, OKX, Gemini, and Bitfinex fell by approximately 475,000 ETH. This contributes to limited liquidity on trading platforms, which can increase price volatility as the available market supply tightens.
Historical data from the 2020-2021 bull market cycle shows that declining exchange reserves correlated strongly with price appreciation. During that period, Ethereum surged from approximately $200 to over $4,800. As reserves hit the current 14.6 million ETH low, market participants are watching for a similar correlation between supply scarcity and price action.
This accumulation trend is supported by data showing that whales accumulate during selloffs despite cautious retail sentiment. Ethereum’s weekly Relative Strength Index (RSI) is currently at 30.93, which is nearing oversold territory. This technical reading coincided with a volume spike to 1.65 million ETH as the market searched for a local bottom.
Support zones and investor sentiment
Despite the buy signals, Ethereum faces a complex path through resistance. Current price action is caught between the $1,600 support and resistance still forming between $2,200 and $2,300. Failure to hold the $1,600 zone could invalidate the exhaustion narrative and lead to further declines, potentially toward long-term targets of $1,090 previously identified by Martinez.
Data from CoinGlass indicates that Ethereum whales have turned net positive, suggesting increased accumulation even as broader sentiment remains bearish. This divergence occurs alongside derivatives data showing shrinking open interest and negative funding rates. Over $1 billion in long liquidations were recorded recently, clearing out high-leverage positions during the drop to $1,500.
The outlook for a recovery depends on whether the $1,600 floor remains intact. While technical signals suggest seller exhaustion, the market remains sensitive to macroeconomic shifts such as the U.S. Treasury rejecting digital currencies by high-ranking officials. For now, the combination of record-low exchange reserves and a TD Sequential buy signal provides the primary technical case for a potential trend shift.