Pepe Coin Enters Bear Market, Plunging 65% from All-Time High

Market Performance and Ethereum’s Underperformance

Pepe, the second-biggest Ethereum meme coin after Shiba Inu, has seen a significant decline in its value, plummeting 65% from its all-time high. The coin’s decline aligns with the broader crypto sell-off, but it’s also influenced by Ethereum’s ongoing underperformance. Ethereum, the largest layer-1 blockchain, has lagged behind other major blockchains like Bitcoin and Solana, with a 5% decline over the past 12 months, while Bitcoin and Solana have surged by over 70%.

Ethereum has lost market share in several sectors, including decentralized finance, meme coins, and non-fungible tokens. This trend has impacted many Ethereum-based tokens, which have underperformed as investors shift their focus to assets within the Solana ecosystem.

Ethereum Price Analysis and Potential Breakout

Ethereum’s price chart suggests that the coin has formed an ascending triangle pattern on the two-week chart, characterized by a horizontal resistance level and a diagonal trendline composed of higher highs and higher lows. A strong bullish breakout will be confirmed if Ethereum surpasses the $4,000 resistance level. A sustained breakout above this price could increase the likelihood of Ether reaching $5,000 in the long term.

Pepe Price Technical Analysis and Potential Breakout

A strong Ethereum price breakout may also lift Pepe and other Ethereum-based tokens. The daily chart suggests that Pepe is positioning for a significant bullish breakout. Oscillators such as the Percentage Price Oscillator and the Relative Strength Index have started forming a bullish divergence pattern, which occurs when these oscillators trend upward while the asset’s price remains in a downtrend.

Pepe is also forming a bearish divergence pattern, which consists of two converging downward trendlines. These lines are approaching their confluence level, a point where bullish breakouts often occur.

Key Levels to Watch for Pepe

The first key level to watch for Pepe is the 200-day moving average at $0.00001351, which represents a 35% increase from its current price. Further gains could push Pepe toward its all-time high of $0.000028, marking a 175% surge. However, if Ethereum continues to weaken, Pepe could decline further, initially to $0.0000060 and then to $0.0000038, levels that marked its lowest swings in August and April last year.

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