Ethereum, the second-largest digital asset, has been lagging behind other major cryptocurrencies, raising questions about its short-term prospects. While many alternative coins are achieving new all-time highs in the ongoing market cycle, ETH is experiencing a downtrend after attempting to revisit the $4,000 mark. According to a prominent crypto analyst, the current situation represents one of the worst performance trends since Ethereum’s inception.
Worst Ethereum Chart In Years Emerges
The bearish sentiment prevailing in the market is significantly reflected in Ethereum’s price movements over recent weeks. Veteran crypto analyst Mags recently highlighted that ETH is currently at a crucial junction, struggling with severe underperformance.
Examining Ethereum’s actions throughout this bull market cycle, Mags noted that it possesses “one of the worst charts of all time.” His analysis suggests that this bull cycle may be the least fruitful for the asset since its launch, leaving traders uncertain about the possibility of ETH reaching new all-time highs during this period.
Historically, Ethereum has attempted to mount several bullish rallies over the past year, often thwarted by substantial resistance levels. Mags pointed out that the price has made three attempts during this cycle alone but has been unable to breach the $4,000 resistance level.
Each failed attempt has led to more significant retracements, as illustrated in the charts. Following the most recent rejection, Ethereum not only fell below the mid-range but also breached the upward-sloping trendline support, marking a significant downward shift.
Consequently, the market expert has mapped out two potential trajectories for Ethereum’s price movements in the near term. One pathway indicates a larger bearish trend, while the other suggests a promising upward trajectory, allowing it to reclaim crucial resistance levels and re-ignite momentum.
In the bearish scenario, Mags predicts that Ethereum may continue to spiral downward with an absence of supportive levels. He believes this surrenders the altcoin to the risk of a farther decline toward the range low of $1,060. In contrast, the bullish scenario proposes that ETH could move toward the $4,000 target for another breakout attempt, contingent upon regaining the $2,500 level.
From a technical perspective, however, Mags leans toward the bearish outcome being more probable, anticipating a continuation of the prevailing downtrend. For ETH to shift back to a bullish trend, it must at a minimum revisit the upward-sloping trendline illustrated in the charts.
Breakout Opportunity Emerges For ETH
Despite the bearish outlook for ETH, several key developments hint at the potential for an upswing. Technical analyst Jonathan Carter has identified a Descending Channel pattern on the Ethereum chart within a two-hour timeframe.
This descending channel historically suggests an impending upswing. With the price action confined within this formation and nearing the upper resistance trendline, ETH appears poised for a breakout to the upside.
Upon breaching the resistance trendline, Carter forecasts a rally toward several targets, including $1,962, $2,143, $2,320, and $2,530. This anticipated trend reversal is expected to gain momentum from increased trading volume during the breakout attempt.
