Source: WeChat Official Account – Lazy King Squirrel
Ethereum (ETH) is the second largest cryptocurrency by market capitalization and has experienced one of the most challenging starts to the year, recording the second worst performance in history during the first quarter.
As of now, ETH’s trading price is slightly above the key support level of $2,000, having fallen 43% year-to-date. This stark contrast is particularly evident when compared to Bitcoin (BTC) and XRP, which have risen 23% and an astonishing 279% respectively during the same period.
Can a 60% increase in the second quarter bring it back to $3,200?
Market expert Lark Davis recently highlighted the sharp decline in Ethereum’s price in his social media update, emphasizing that the altcoin fell 38% in the first quarter of this year.
As shown in the comparative chart shared by Davis, this figure is very close to the worst quarterly performance of 46% in the first quarter of 2018.
After experiencing that unsettling quarter in 2018, Ethereum briefly rebounded 15% in the second quarter, but subsequently fell over 40% in the following quarters, raising concerns among current investors about the possibility of this pattern re-emerging in the current cycle.
Despite the discouraging numbers, Davis posed an interesting question regarding the potential for “explosive” growth of Ethereum in the second quarter. Historically, since 2016, ETH has averaged a 66% increase during this period.
If this trend continues and Ethereum’s price achieves a 60% rise in the coming months, its price could climb to $3,200 per token—marking the highest level since early February this year.
Cryptocurrency Experts Predict Ethereum Price Increase of 1,100%
Despite the ongoing short-term challenges, many analysts remain optimistic about Ethereum’s long-term prospects. Cryptocurrency analyst Merlijn compared the current market conditions to Bitcoin’s past performance, suggesting that Ethereum is likely to follow a similar trajectory.
The analyst noted, “Accumulation, breakout, and V-shaped recovery loading,” indicating that ETH may be on the verge of a new bull market, with projections that it could reach $24,000 during this cycle—a substantial increase of 1,100%.
However, the road to recovery is not without obstacles. Expert Ali Martinez recently emphasized the key resistance levels that Ethereum must overcome for a sustainable rebound in the short term.
Martinez pointed out that ETH’s price has recovered to a real price of $2,040, but the next significant challenge lies at the $2,300 mark, where the leading altcoin has faced strong resistance.
Although Ethereum has seen a recent uptick, rising 10% over the past two weeks, it still faces noticeable monthly losses, having dropped nearly 25% after the broader market correction.
