Zamalek's hopes of progressing to the knockout stages of this season's Champions League were all-but extinguished on Tuesday after the Egyptian giants succumbed to a 1-0 defeat to Tunisians ES Tunis.
Carteron, who returned to the club last week following Jaime Pacheco's sacking, was critical of his players' condition heading into the match but refused to rule out the prospect of his side reaching the quarter-finals of the competition.
Zamalek have drawn two and lost two of their opening four matches and currently sit six points behind second-placed MC Alger in the log standings, meaning they must win both of their remaining matches and hope other results go their way in order to progress.
"When I returned to the team, I found the players in a poor physical condition in addition to their bad psychological state," Carteron said, per KingFut.
"We will use our chances to qualify for the quarter-finals until the end, and we will fight. The team was completely different compared to my first stint, and it was difficult to make random substitutions in a difficult match like against Esperance.
While Carteron was optimistic about his side's ability to turn things around in the continental competition, he downplayed his side's chances of winning the Egyptian Premier League, despite Zamalek currently holding a seven point lead of Al Ahly, who have three games in hand.
"We were not ready, psychologically or physically, and we have a lot of work ahead of us in the coming period," he added. "The league matches are deceptive and facing Esperance in a difficult position for the team was not easy.
"It is possible to win the league, but things are different in Africa, and the psychological and mental aspects are able to give the players great strength on the pitch."