Ethereum has been underwhelming for many investors this cycle, especially those who believed it would soar to new records
Ethereum's price has been performing poorly compared to Bitcoin, especially considering the expectations for a potential Bitcoin rally toward the $100k mark. While Bitcoin has managed to rise above $50k, Ethereum has fallen sharply, returning to price levels last seen in 2021.
Despite the significant losses already suffered by crypto traders this year, some market analysts believe the worst may still be yet to come, especially for Ethereum.
One technical analyst, posting under the name TradeNation on TradingView, highlighted the $1,724 zone as a crucial pressure point. This price level, now acting as key resistance following recent declines, is seen as a potential battleground. If Ethereum can reclaim and hold this zone, there’s a shot at recovery, with possible upward targets at $1,840 and $1,926.
However, if buyers fail to maintain support at that level and sellers can push lower, the next support is not expected to arrive until $1,409, with a potential extension to $1,350. A complete breakdown could open the door to even deeper losses, with $1,265 and $1,080 flagged as possible long-term floors.
So far, momentum favors the downside. TradeNation notes that market sentiment around Ethereum has deteriorated faster than the broader crypto sector, and its lack of bullish follow-through has made it a prime target for skepticism.
Continued weakness could easily trigger more liquidations and panic selling, further pressuring the cryptocurrency.
On-chain indicators also point to a bleak outlook for Ethereum. Activity on the Ethereum network is rapidly decreasing, with gas fees now sitting at levels last seen in 2020.
Additionally, some of the largest ETH holders have started to sell their positions, with reports of 143,000 ETH moving in just a week. As network usage declines and selling pressure from whales increases, Ethereum's downtrend may have more room to run.
