Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has experienced one of its most challenging starts to the year, recording its second-worst performance in the first quarter of its history.
As of now, ETH is trading just above the crucial support level of $2,000, reflecting a year-to-date decline of 43%. This stark contrast is particularly notable when compared to Bitcoin (BTC) and XRP, which have seen gains of 23% and an astonishing 279%, respectively, during the same period.
Could A 60% Surge In Q2 Bring It Back To $3,200?
Market expert Lark Davis has drawn attention to the dramatic downturn in Ethereum’s price in a recent social media update, highlighting a 38% drop in Q1 of this year for the altcoin.
This figure is alarmingly close to its worst quarterly performance of 46% recorded during the first quarter of 2018, as noted in the comparison chart shared by Davis.
Following that troubling quarter in 2018, Ethereum saw a brief recovery of 15% in Q2, only to face more than 40% declines in the subsequent quarters, respectively, raising concerns for current investors that this pattern might occur once again in this cycle.
Despite these discouraging figures, Davis posed an interesting question regarding the potential for an “explosive” second quarter for Ethereum. Historically, since 2016, ETH has averaged a remarkable 66% surge during this period.
If this trend continues and the Ethereum price were to achieve a 60% increase in the coming months, its price could climb to $3,200 per token—levels not seen since early February of this year.
Crypto Expert Predicts 1,100% Surge For The Ethereum Price
While short-term challenges remain, many analysts retain a long-term bullish outlook for Ethereum. Crypto analyst Merlijn drew parallels between the current market conditions and Bitcoin’s past performance, suggesting that Ethereum is poised for a similar trajectory.
The analyst noted, “Accumulation, breakout, and V-shape recovery loading,” implying that a new bull run could be on the horizon for ETH, with forecasts suggesting it could reach up to $24,000 during this cycle—a major 1,100% increase.
However, the path to recovery is not without its hurdles. Expert Ali Martinez recently highlighted key resistance levels that Ethereum must overcome for a sustainable rebound in the short-term.
Martinez noted that ETH’s price has reclaimed its realized price of $2,040, but the next significant challenge lies at the $2,300 mark, where strong resistance has been observed for the leading altcoin.
Despite a recent recovery that saw a 10% spike in the past two weeks, Ethereum still faces notable monthly losses, down nearly 25% following a broader market correction.
Featured image from DALL-E, chart from TradingView.com
