5 Months In Red: What Happens If Ethereum Price Closes January With A Loss?

Overview

Ethereum is facing a challenging start to 2026 as it struggles to regain momentum amidst a continued downtrend. Following a disappointing performance throughout the previous year, the cryptocurrency is on track to potentially close January with its fifth consecutive month of losses, which could further entrench bearish sentiment in the market.

Ethereum’s Ongoing Downtrend

The current situation for Ethereum is marked by a prolonged slump, as the cryptocurrency has recorded losses for four straight months in 2025. As January 2026 progresses, market observers note that Ethereum is poised to close the month in the red for the fifth consecutive time. This pattern is significant, as it reinforces the ongoing bearish trend that has characterized the market for some time.

According to on-chain data from CryptoRank, Ethereum experienced more months of losses than gains throughout 2025. The year began with four months of decline from January to April, followed by a brief recovery in May, which was short-lived as the cryptocurrency fell again in June. After achieving gains in July and August, Ethereum entered a downward trajectory once more.

During the most recent four-month decline, Ethereum closed September down by a notable percentage. The downward trend accelerated sharply at the end of November, with a significant crash reported. December continued this trend, albeit with a smaller decline. As January unfolds, Ethereum remains in a downtrend, having already fallen this month and showing no clear signs of a bullish reversal.

Currently, Ethereum’s trading price is above a certain threshold, reflecting a decline over the past week. This situation raises concerns about the cryptocurrency’s future performance and investor sentiment.

Historical Context of Consecutive Losses

The potential for Ethereum to close five consecutive months in the red is a concerning prospect, especially when viewed in the context of historical performance. The last occurrence of such a streak was in 2018, a year marked by substantial underperformance for Ethereum, which recorded gains in only a few months. Notably, November of that year saw a steep decline, and following a brief recovery in December, Ethereum closed January 2019 with further losses.

If the historical patterns were to repeat, closing January in the red could signal ongoing difficulties for Ethereum. While February has historically been a bullish month for the cryptocurrency, the performance in 2025 has seen declines extending from January through to April, leaving uncertainty regarding whether Ethereum will follow the bullish trends of the past.

From author

The current situation for Ethereum is a reflection of the broader challenges facing the cryptocurrency market. The ongoing downtrend and potential continuation of losses highlight the volatility and unpredictability of the sector. Investors and market participants are closely watching these developments, as past performance can often serve as a guide for future trends.

Impact on the crypto market

• Ethereum’s potential fifth consecutive month of losses could reinforce bearish sentiment across the cryptocurrency market.
• A continued downtrend may lead to decreased investor confidence and participation in Ethereum and other cryptocurrencies.
• Historical patterns suggest that if Ethereum continues to perform poorly, it may set a precedent for further declines in the overall market.
• The uncertainty surrounding Ethereum’s performance could lead to increased volatility as traders react to market signals.
• Market participants may begin to reassess their strategies and risk tolerance in light of Ethereum’s struggles.