Ether faces growing downside risks as prolonged underperformance and shifting macro conditions weigh on investor sentiment.
Bloomberg Intelligence senior commodity strategist Mike McGlone shared a bearish outlook on Ether in a recent social media post.
McGlone said Ether is more likely to fall toward $2,000 than rebound to $4,000 in the current market cycle.
Ether $2,000 or $4,000 next? My bias is downward.
Mike McGlone said.
He noted that 2026 would mark the sixth consecutive year without meaningful upside for the asset.
McGlone contrasted Ether’s stagnation with strong gains in Bitcoin, gold and global equity markets.
He argued that relative underperformance has become a defining feature of Ether’s recent price cycles.
The strategist said prolonged flat performance can reshape portfolio allocation decisions.
He added that investors often reassess assets that lag peers during multi-year expansion phases.
McGlone framed his analysis within a broader cross-asset and macroeconomic context.
He avoided focusing on near-term technical indicators or protocol-specific developments.
The strategist also questioned how risk assets may react if equity volatility normalises.
What of all risk-assets when buried US stock market volatility mean reverts?
Mike McGlone said.
He has previously warned about Ether downside risks during periods of tightening liquidity.
Earlier Bloomberg Intelligence research linked Ether consolidation to structural market signals.
That research cited macro headwinds, leverage dynamics and shifting correlations as key pressures.
Despite bearish views, other analysts have outlined more constructive scenarios for Ether.
Standard Chartered’s digital assets research team highlighted potential upside from scaling upgrades.
The bank said institutional tokenisation activity could help restore network momentum.
Bernstein analysts described Ether as core infrastructure for on-chain financial markets.
They linked long-term valuation potential to growth in stablecoins and real-world assets.
Coinbase Institutional researchers pointed to strong developer activity across the ecosystem.
They also cited rising layer-two settlement volumes as a supportive factor.
Improving fee dynamics were identified as another possible tailwind for Ether.
Analysts cautioned that broader crypto market conditions remain decisive.
The debate highlights diverging views on Ether’s role in the next market phase.
Market participants continue to weigh macro risks against network fundamentals.
At the time of reporting, Ethereum price was $2,934.57.