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
