Ethereum’s been underperforming lately, leaving many wondering what the future holds. While other major cryptos are hitting new highs, ETH has been sliding after repeatedly testing the $4,000 mark. One analyst even calls its current chart one of the worst ever.
A Grim Chart for Ethereum
The past few weeks haven’t been kind to Ethereum. Analyst Mags describes ETH as being at a critical juncture, facing serious headwinds. He claims ETH’s chart is among the worst in its history, suggesting this bull run might be its weakest yet. It’s unclear if it will even reach a new all-time high this cycle.
The problem? Multiple attempts to break above $4,000 have failed, leading to increasingly deeper drops. The latest rejection broke below key support levels.
Mags sees two possible scenarios:
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Bearish Scenario: ETH continues its downward trend with little support, potentially plummeting to $1,060. Mags leans towards this outcome.
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Bullish Scenario: ETH recovers to $2,500 and then attempts another push towards $4,000.
To turn things around, ETH needs to at least get back above its upward-sloping trendline.
A Glimmer of Hope?
Despite the bearish outlook, there’s a potential silver lining. Analyst Jonathan Carter has identified a descending channel pattern on the 2-hour chart. Historically, these patterns often precede price increases. If ETH breaks out of this channel’s upper resistance, Carter predicts a rally towards $1,962, $2,143, $2,320, and potentially even $2,530. A strong volume increase would likely accompany such a breakout.
