Ethereum (ETH) Faces A Technical Threat On The Quarterly Timeframe Chart

Ethereum has been weighed down by persistent downward momentum, and even a near-term rally may not be enough to shift the broader trend immediately

The crypto market has seen better days, especially for Ethereum, which has been weighed down by persistent downward momentum. Even a near-term rally may not be enough to shift the broader trend immediately.

As it stands, the ETH price is now at an important technical moment, with crypto analyst Tony “The Bull” Severino warning of a possible close below a significant long-term indicator. With just days remaining in the first quarter of 2025, Severino took to the social media platform X to highlight the implications of Ethereum’s position relative to its 3-month Bollinger Band basis, which could spell trouble.

The 3M Bollinger Band is a version of the standard Bollinger Bands indicator applied to a 3-month (quarterly) chart. In this case, each candlestick on the chart represents three months of price action, so it covers ETH’s price behavior from a long-term perspective. Speaking of long-term price action, the Ethereum / U.S. Dollar 3-month index shared by Severino shows that the altcoin has been trading within these Bollinger bands since July 2022.

As shown in the price chart below, Ethereum is currently trading close to the lower Bollinger band, which is just around the $2,000 price level. Interestingly, the current candlestick, which only has a few days to close, is highlighted by a lower wick protruding below the lower band. This means the Ethereum price has already broken below the Bollinger Band for a brief period this quarter, but only a close below could quickly seal the deal.

If Ethereum does close below the Bollighter Band, it will undoubtedly signal an incoming wave of bearish momentum that might outshine its current lackluster price action. The cryptocurrency might lose the $2,000 psychological price threshold completely and lose many support levels up until $1,500 before any strong rebound. Tony Severino noted that there are only seven days left to save Ethereum from closing below the 3M Bollinger Band and avoid a bearish potential.

In another post on X, the analyst expanded on the implications of ETH’s current structure. Many investors are hoping for a swift rebound and a return to all-time highs, but he cautioned that such an optimistic run might take a long time to manifest. Any bullish trend in the short term might not be enough to reverse the larger downward trend that has been developing for the past 12 months. A meaningful structural change will require sustained bullish pressure over multiple quarters, not just a short-term bounce.

“Think in terms of quarters, not months, weeks, or days,” Severino added.

At the time of writing, Ethereum is trading at $2,052.