Ethereum's Q3 Rally Faces Bearish Market Signals Amid Near-58% Gain

Ethereum's third-quarter rally is facing bearish market signals despite a nearly 58% gain so far in the quarter, positioning the token to end its first-ever three-quarter losing streak. The streak consisted of consecutive declines of almost 29% in the fourth quarter of 2025, roughly 30% in the first quarter of 2026, and nearly 26% in the second quarter of 2026.

Tom Lee, chairman of Bitmine Immersion Technologies, had predicted that Ethereum would break this streak. He pointed to institutional allocation and a potential passage of the CLARITY Act as factors that could support a strong fourth quarter for crypto. The Federal Reserve's September meeting is also expected to be important for markets.

The current advance follows Ethereum's longest quarterly losing run on record, with four previous instances where back-to-back quarterly losses were followed by a positive quarter. The average third-quarter return is 12%, and the median return is 10%. If this trend continues, it would mark a significant shift in Ethereum's market performance.