As converter-based renewable energy systems increasingly integrate with public grids, grid codes are becoming more demanding. A major challenge for these inverter-based systems is providing reactive current during sudden voltage drops - a feature known as Low-Voltage Ride-Through (LVRT). This is particularly difficult during unbalanced faults, where the system must precisely inject power across different phases to maintain grid stability. At the WISO 2025 a novel estimation algorithm for the positive- and negative-sequence systems was presented by the authors that is based on the online elliptical approximation of the voltage space vector trajectory. The algorithm shows enhanced dynamic performance regarding grid transients and grid faults compared to PLL based methods. This paper evaluates an extension of the method for the application in weak and distorted grids. The performance of the proposed enhanced algorithm is analyzed under various distortion scenarios through simulations and validated on a real-time control platform using Control-Hardware-in-the-Loop (CHiL) testing. The results demonstrate that the enhanced algorithm accurately detects positive- and negative-sequence components during grid distortions with a fast settling time. Thereby it clears the way to rapid, supportive current injection from renewable energy sources. This work is an outcome of the collaborative research project ReWindT of Silicon Austria Labs and DEIF Wind Power Technology Austria.