Ethereum, the second-largest digital asset, has been underperforming compared to other major cryptocurrencies, raising concerns about its short-term outlook. While other coins have hit new highs in the current cycle, ETH has been in a downtrend after revisiting the $4,000 level. A crypto analyst describes its current movement as one of the worst since the asset entered the market.
The Worst Ethereum Chart in Years
Bearish market conditions have significantly impacted Ethereum’s price action over recent weeks. Veteran crypto analyst and trader MAGS highlights that ETH is at a critical juncture, exhibiting severe negative performance.
MAGS delves into ETH’s behavior during this bull cycle, stating that the altcoin has "one of the worst charts ever." His analysis suggests this cycle could be the least productive for the asset since its inception, leaving traders uncertain about its potential to reach new all-time highs.
Key Observations:
- Ethereum has made multiple bullish attempts over the past year, each cut short by strong resistance.
- Price tried three times to break above the $4,000 range but failed, leading to deeper retracements.
- The latest rejection pushed ETH below mid-range support, trading near the upward-sloping trendline from the cycle’s bottom.
Multiple failed attempts | Source: MAGS on X
Potential Price Trajectories:
- Bearish Scenario: ETH could drop further to the $1,060 range if it fails to hold current levels.
- Bullish Scenario: A reclaim of the $2,500 level might fuel another breakout attempt toward $4,000.
MAGS notes the bearish scenario is more likely, predicting an extended downtrend. For ETH to turn bullish, it must at least retest the upward-sloping trendline on the chart.
Technical Insights: A Glimmer of Hope?
Despite the gloomy outlook, technical expert Jonathan Carter spots a falling channel pattern on Ethereum’s 2-hour chart—a historical precursor to upward movements.
Breakdown of the Pattern:
- A breakout above the resistance trendline could propel ETH toward targets like $1,962**, **$2,143, $2,320**, and **$2,530.
- Increased volume during the breakout would strengthen the reversal signal.
👉 Why Ethereum’s next move could surprise traders
FAQ Section
1. Why is Ethereum underperforming in this bull cycle?
ETH faces strong resistance near $4,000, leading to repeated rejections and deeper retracements. Market sentiment suggests weaker momentum compared to other altcoins.
2. What’s the worst-case scenario for ETH’s price?
If bearish pressure continues, ETH could drop to $1,060, a level last seen during the 2023 consolidation phase.
3. Are there any bullish signals for Ethereum?
The formation of a falling channel on shorter timeframes hints at a potential reversal if resistance is broken with high volume.
👉 How to spot Ethereum’s breakout opportunities
4. What key level must ETH reclaim to turn bullish?
Regaining the $2,500 level and retesting the upward-sloping trendline are critical for a bullish reversal.
Final Thoughts
Ethereum’s price action reflects heightened uncertainty, with technical and on-chain metrics pointing to conflicting outcomes. Traders should monitor:
- The $1,900–$2,000 support zone.
- Breakout attempts from the falling channel.
- Volume trends during price rallies.
While the bearish scenario dominates short-term forecasts, ETH’s historical resilience and upcoming network upgrades could shift momentum. Stay updated with real-time analysis and market insights to navigate these volatile conditions effectively.
👉 Discover Ethereum trading strategies for 2025
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