Market analysts warn Ethereum rallies could turn into short-lived bull traps
Ethereum’s price trajectory in 2026 may face significant limitations as broader crypto market conditions remain uncertain. Analysts point to Bitcoin’s weakening market structure as a key factor that could prevent Ether from achieving sustained new highs, even if temporary price surges occur.
Ethereum’s performance has historically been closely tied to Bitcoin. If Bitcoin remains in a prolonged downturn, Ethereum may struggle to break higher on its own. Market observers note that current price behavior resembles earlier bear market phases, where rallies failed to sustain momentum.
Some forecasts suggest Bitcoin could revisit $60,000 by mid-to-late 2026, a scenario that would likely cap upside for major altcoins. If Bitcoin remains under pressure, Ethereum’s upside becomes structurally limited.
If Bitcoin is truly in a bear market, which is what it feels like, it would be kind of hard for Ethereum to go up there, Cowen said on the Bankless podcast .
Ethereum last reached its $4,878 all-time high in August, briefly reclaiming levels not seen since 2021 before reversing into a downtrend. With Ether currently trading near $2,900, a return to peak levels would require a price increase of over 40%.
Analysts caution that even if Ethereum regains this level, the move could represent a bull trap, followed by a sharp correction. Projected downside targets in such a scenario range between $1,800 and $2,000, reflecting prior support zones.
Ethereum is viewed as the only major altcoin with a realistic chance of revisiting prior highs in the current cycle. Many smaller tokens that failed to peak earlier may not recover meaningfully. The absence of a broad altcoin rotation suggests limited speculative appetite.
While short-term rallies remain possible, the data suggests Ethereum’s path to new highs in 2026 is uncertain. Sustainable gains may depend more on Bitcoin’s recovery than Ethereum-specific developments, leaving investors cautious about upside expectations.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.