Carlo Ancelotti's side look a pale imitation of last season's double winners and the team that exploded out of the blocks in a flurry of goals at the start of this campaign.
A distant fifth in the Premier League and knocked out of the FA Cup by Everton on penalties on Saturday, the Champions League Holy Grail has become an imperative for Ancelotti whose job prospects could take a hammer blow in the Danish capital.
"Chelsea have huge experience in the competition but they still have that ghost to bury from 2008," Le Saux told Reuters on the day the astronomical ticket prices for this year's Wembley final were announced.
While Ancelotti's ageing squad could yet go on and banish the memory of that rainy night in Moscow when John Terry's penalty miss against Manchester United cost Chelsea the trophy, Le Saux said such bitter experiences can become a burden.
"They're still in the Champions League and have a reasonable draw in the last 16," he said.
"But the competition has become a bit more of a problem mentally for the senior players because they have got so close in 2008. It was heartbreaking and they are so desperate to win it because time is moving on.
"For (the likes of Frank Lampard, Terry and Ashley Cole) not to have their name on that trophy given how well they have played over the years in the tournament would be a huge blow."
Le Saux said it was hard to put his finger on why Chelsea's season had gone off the boil, but suggested confidence had ebbed away during a poor run of results.
"They are low on confidence," said the former England defender, who played a total of 12 years with Chelsea in two spells, winning a League Cup, and FA Cup and a Cup Winners Cup.
"It's also about the confidence of the opposition when they face Chelsea now. Look at the Sunderland game when they were beaten 3-0 at home. That would have been unthinkable.
"At the start of the season Chelsea were flying, scoring goals for fun and not conceding. Teams were fearful.
"Suddenly they've hit a bad patch and they can't seem to get out of it. Opposition teams now sense they can beat Chelsea.
"That shift in psychology can make a massive difference and Chelsea are trying to recover from that."
"He is in a new environment, opposing fans are giving him flak, singing songs about him," Le Saux said.
"He won't have experienced what he's going through so you have to g
