Ethereum (ETH) has been in a downtrend since late December, facing significant selling pressure and negative market sentiment regarding its performance this year. Despite Bitcoin and other altcoins showing signs of recovery, ETH has struggled to gain momentum, leaving investors questioning whether it will underperform this cycle.

However, top analyst Carl Runefelt shared valuable insights on X, revealing that historical data suggests Ethereum tends to perform very bullishly in key phases of the market cycle. While sentiment remains bearish in the short term, Runefelt believes ETH is still poised for significant upside if it follows past market trends.

The coming weeks will be crucial in determining Ethereum’s next major move. If ETH can reclaim key resistance levels, it could reverse its downtrend and align with the broader bullish momentum seen in the market. However, failure to gain traction could see ETH continue its underperformance, leading to further doubts about its role in this cycle’s rally.

With historical trends pointing toward a potential breakout, all eyes are now on Ethereum’s ability to recover and confirm a bullish trajectory.

February Could Spark An Ethereum Rally

Ethereum has struggled to gain momentum for the past several months, lagging behind Bitcoin and many altcoins. Compared to previous cycles, ETH has remained underwhelming, leading to growing concerns that it might continue to underperform throughout the year. With several fast-growing altcoins emerging and gaining market share, some analysts even speculate that ETH’s position as the second-largest cryptocurrency could be at risk.

Despite the negative sentiment, Ethereum could be approaching a key opportunity for investors. Historically, February has been a strong month for ETH, often marking the start of its parabolic move in the fourth year of the Bitcoin halving cycle. If this trend holds, ETH could be on the verge of a bullish turnaround despite its weak performance so far.

Top analyst Carl Runefelt recently shared a chart on X highlighting Ethereum’s historical monthly returns, revealing that February has consistently been one of ETH’s best months across past cycles. If ETH follows this historical pattern, it could be gearing up for a significant rally, reversing its downtrend and aligning with the broader bullish sentiment in the market.

For now, Ethereum must break out of its bearish structure and reclaim key resistance levels. If it can do so, a major rally could be on the horizon.

Ethereum Struggles at $3,220

Ethereum is trading at $3,220 after enduring days of negative sentiment, volatility, and uncertainty. Despite Bitcoin and other altcoins showing signs of strength, ETH has yet to confirm a trend reversal, leaving investors cautious about its next move.

To break out of its bearish structure, ETH must push above $3,220 and reclaim key resistance levels that previously acted as strong support for weeks. The critical zone to watch is $3,500, as a breakout above this mark would confirm bullish momentum and signal the start of a new uptrend.

However, failure to hold current levels could lead to further downside pressure. If ETH drops below $3,000, it could trigger a deeper correction, shaking investor confidence and extending Ethereum’s underperformance relative to Bitcoin and other leading altcoins.

For now, Ethereum remains in a crucial consolidation phase, and the coming weeks will determine whether ETH can reclaim its strength or continue to struggle below key resistance levels.

Featured image from Dall-E, chart from TradingView

Ethereum (ETH) has been under intense selling pressure, raising concerns among investors about the coming weeks. The trend remains bearish, and if this momentum continues, ETH could struggle to find support at key levels. Compared to Bitcoin and other altcoins, ETH has been underperforming, fueling a negative outlook among traders.

Unlike previous market cycles where ETH moved in sync with Bitcoin, recent price action suggests a disconnect between the two assets. Key metrics from IntoTheBlock reveal that ETH remains largely uncorrelated to BTC, showing a 30-day price correlation of just -0.06. This lack of correlation means that Bitcoin’s bullish momentum hasn’t translated into strength for ETH, adding to investor uncertainty.

With Ethereum lagging behind other major cryptocurrencies, analysts warn that further downside is possible unless ETH can reclaim critical resistance levels. The market is closely watching whether ETH can find support and reverse this underwhelming price action or if the bearish trend will continue in the coming weeks. As ETH struggles to regain momentum, investors remain cautious, waiting for a clearer signal before making their next move.

Ethereum Correlation With The Market

Ethereum has been stuck in a downtrend since late December, dropping over 28% from its local high of $4,100. Despite Bitcoin’s bullish momentum, ETH has failed to gain traction, leaving investors concerned about its underwhelming price action. Many are now speculating whether Ethereum could face another disappointing year, as altcoins like Solana, Avalanche, and Polygon continue to outperform ETH in terms of price movement and investor interest.

Key metrics from IntoTheBlock provide an interesting insight into Ethereum’s market behavior. Unlike in previous cycles where ETH closely followed BTC, it now appears largely uncorrelated, with a 30-day price correlation of just -0.06.

This means that even as Bitcoin moves higher, Ethereum has struggled to gain momentum. However, other major assets like Polygon (0.91) and Avalanche (0.93) remain closely correlated, suggesting that ETH’s price action is unique in this cycle.

Looking ahead, February could be a pivotal month for Ethereum. Historically, this has been a bullish period for ETH, and many investors are hoping for a trend reversal. If ETH can break key resistance levels and reclaim lost ground, the sentiment around its performance this cycle could quickly shift. However, failure to gain momentum could lead to continued stagnation, allowing other altcoins to take the spotlight.

Ethereum Struggles Below Key Support As Bears Take Control

Ethereum is trading at $3,090 after failing to hold above the 200-day Exponential Moving Average (EMA) at $3,137. This key level was a crucial support zone for bulls, but now that it has been lost, bearish pressure is mounting.

Bulls are in trouble, as the price action suggests ETH is gearing up for another leg down. If this selling pressure continues, ETH could set a new local low and test lower demand around the $2,900 mark. A breakdown below this level would signal a deeper correction, potentially leading to extended consolidation or further declines.

For Ethereum to regain momentum, bulls must reclaim the $3,300 level and push higher. This zone has acted as a strong resistance in recent weeks, and flipping it into support would confirm a trend reversal. However, if ETH fails to reclaim this mark, the next critical level to watch is below $3,000, where additional buying interest may emerge.

With market sentiment leaning bearish, ETH must hold above key demand zones to avoid a more significant downturn. If bulls cannot step in soon, Ethereum could continue to lag behind Bitcoin and other top altcoins.

Featured image from Dall-E, chart from TradingView

Ethereum (ETH) has surged from $3,050 to $3,400 in less than three days, igniting fresh optimism among investors who believe ETH is poised for significant gains this year. After weeks of uncertainty and selling pressure, Ethereum’s latest price action has renewed bullish sentiment, with analysts predicting further upside.

Key on-chain metrics from IntoTheBlock support this outlook, revealing that Ethereum has an average holding time of 2.4 years, signaling strong confidence from long-term holders. This data suggests that despite short-term volatility, Ethereum investors remain committed, reinforcing the idea that ETH could see a sustained rally as market conditions improve.

With bullish momentum building, all eyes are now on critical resistance levels, which, if broken, could push Ethereum toward multi-month highs. However, investors remain cautious, as Ethereum still needs to reclaim its previous all-time highs to fully confirm a new bullish phase. The coming weeks will be crucial in determining whether ETH can maintain its uptrend and outperform the broader market in 2024.

Ethereum Faces Uncertainty But LTHs Show Confidence

Ethereum has been in a persistent downtrend since late December, with its price falling over 28% from local highs of $4,100. Compared to Bitcoin’s performance, ETH has underwhelmed investors, leading to speculation that 2024 could be another “bad year” for the second-largest cryptocurrency.

Despite these concerns, on-chain data from IntoTheBlock suggests a different outlook. Metrics reveal that Ethereum’s average holding time is 2.4 years, highlighting strong confidence from long-term holders. This indicates that despite the current price struggles, ETH investors continue to accumulate and hold, anticipating future gains.

However, Ethereum’s growth potential appears somewhat tempered as Layer 2 solutions (L2s) and alternative Layer 1 (L1) blockchains continue to fragment attention and adoption. Newer investors and developers are exploring competing ecosystems, leading to a lack of fresh short-term participants in ETH’s network. This shift has created uncertainty around whether ETH can maintain its dominant position in the altcoin space.

The coming weeks will be crucial for ETH, as February has historically been a bullish month for the asset. If Ethereum can reclaim key resistance levels and attract new demand, a reversal could be on the horizon, offering investors renewed confidence in its long-term potential.

ETH Price Outlook: Key Levels To Watch

Ethereum (ETH) is currently trading at $3,320 after a volatile Friday that saw the price surge to $3,448 before retracing below $3,300. Despite the price swings, ETH looks strong and poised to break out of its downtrend.

If bulls can hold above the $3,300 mark and push past $3,500 over the weekend, ETH could enter a massive rally toward the $4,000 level. This would signal a trend reversal, attracting fresh demand and reigniting investor confidence.

However, the risk of further consolidation or even a correction remains. If ETH fails to maintain current support levels, it could lead to increased selling pressure, pushing the price back to test lower demand zones. Losing the $3,200 mark would indicate weakness, potentially delaying Ethereum’s bullish breakout.

For now, ETH remains at a critical juncture, with investors watching closely to see whether bulls can sustain momentum and reclaim key resistance levels. The weekend price action will be pivotal in determining Ethereum’s next major move, setting the tone for the coming weeks.

Featured image from Dall-E, chart from TradingView