A Canberra teenager accused of being part of a criminal group distributing ecstasy has faced the ACT Magistrates Court.

Dean Ivan Welsh, 19, from Weetangera was charged with trafficking in a controlled drug other than cannabis.

The court heard two alleged street level drug dealers in Civic told officers Walsh was their supplier after they were arrested.

But Welsh has not provided the name of those above him in the alleged criminal group.

A statement of facts tendered in court said a police officer had contact Welsh and arranged for him to sell him two "eight balls" or seven grams of ecstasy at a Fyshwick fast food store yesterday.

Welsh was then arrested when he arrived at the location.

Police searched the car Welsh was using and seized around seven grams of a pink rock-like substance on the curb next to the car.

They also seized imitation soft drink cans with compartments that could be used to conceal small items, as well as cash and a mobile phone.

Police told the court Walsh had been offending "for some time".

"We're concerned that if he was granted bail this offending would continue," First Constable Gareth Harms told the court.

He said police were worried Welsh may also interfere with witnesses if released on bail.

"As stated we've arrested two males involved with dealing drugs," he said.

"There may be some form of retribution towards them."

First Constable Harms also raised concerns Welsh may flee the jurisdiction because of the strong case against him and the possibility of a lengthy jail term.

The court heard Welsh was studying to become a personal trainer, had a job lined up at a Canberra gym and had strong personal ties to the ACT.

Family members offered to post a surety of $2,000 for his release.

A woman identified as his "second mother" said she had known Welsh since he came to her for respite care as baby.

She said he had lived with her for the past year and she was "surprised" at the serious allegations against him.

He was granted bail on strict conditions.

The matter will return to court later this month.