Can Ethereum avoid third consecutive quarterly decline?

Can Ethereum avoid third consecutive quarterly decline?
Can Ethereum avoid third consecutive quarterly decline?

​Ethereum could close three consecutive quarters in negative territory for the first time in its history. Can improving market sentiment prevent that from happening?

Following the ceasefire in the Middle East, Ethereum gained approximately 4%, but there is still little evidence of fresh demand entering the market.

According to SoSoValue, outflows from spot ETH ETFs continue, suggesting that much of the recent rebound may be driven by short covering. Meanwhile, institutional investors appear to be using the rally as an opportunity to reduce exposure at higher prices.

Despite declining exchange reserves and record amounts of ETH locked in staking, there is still no sign of sustained capital inflows into the asset.

ETH remains weaker than Bitcoin

Unlike Bitcoin, Ethereum has failed to break through the key $1,750 resistance level and is now approaching a short-term trendline resistance.

As a result, the key zone to watch in the coming days is the $1,750–$1,800 range (highlighted in yellow on the chart).

A successful breakout above this area would open the door for a move toward $1,900. However, altcoins currently remain noticeably weaker than Bitcoin.

Another technical factor raising concerns is trading volume. Market bottoms are typically confirmed by elevated trading activity during periods of consolidation. At the moment, this pattern is absent, as volume indicators continue to support the prevailing downward trend.

The expected trading range for today is $1,700–$1,750.

Ethereum still lacks strong conviction from investors

Despite improving market sentiment, Ethereum's main challenge remains the lack of sustained demand from large investors.

Market participants remain cautious and are reluctant to commit fresh capital to cryptocurrencies.

Ethereum continues to rebound alongside Bitcoin but still appears weaker than the broader market. The recent recovery looks more like a relief rally following oversold conditions than the beginning of a new bullish trend.

For the first time in its history, ETH could finish three consecutive quarters in decline. To avoid this outcome, the cryptocurrency would need to rally more than 20% before the end of the month — a scenario that currently appears unlikely.

Until investors return to the cryptocurrency market in meaningful numbers, expectations for a sustainable trend reversal remain limited.

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