Ethereum has dropped in price over the past 3 days as traders correct their position for June – historically, it’s worst month.
EthereumETHThe price of has fallen for the last three days and reached a new low at $2,500. It’s down 9.8% on its previous monthly peak. It has still outperformed many altcoins that have dropped more than 15 percent from their monthly highs.
Summer is here, and ETH is regressing. CoinGlass shows the monthly average performance for June from 2016 to date is minus 7,4%. The median return for June was minus 8,68%.
Bitcoin is (also) celebrating June.BTC) second-worst-performing month after September, with an average return of minus 0.35%.
The seasonality does not work every time. The ETH fell by 18% last March, bucking a trend of four years’ gains. The price of ETH also decreased by 31% during February after it had recorded positive gains for six straight years.
As June begins, Ethereum is showing some solid fundamentals. The MVRV (Measure of Value to Realized Value) ratio, which is closely watched, has dropped from minus 0.0741 to -0.074. MVRV is a ratio that compares a market price and realised value. If the reading falls below 1, it indicates an undervalued asset.
Ethereum Whales may also be buying up the dip. The holders of 103.5 millions ETH coins are up on the 103.45million ETH they held this week. A high number of purchases by whales can be a bullish indicator.
Wall Street has also bought ETH in this month. Since the beginning of the month, Spot Ethereum exchange-traded funds have seen inflows. This brings the total inflows up to $3 billion.
Ethereum Price Technical Analysis
On the daily chart, you can see that Ethereum hit a low of $1,385 in April and bounced up to $2,530 today. The price has moved up above the moving 50-day average, and it is slowly creating a bullish pattern.
This pattern is composed of a horizontal line and consolidation.
Ethereum also forms a cup and handle pattern. This is a common continuation symbol. Its depth is approximately 50% and it has a $4,185 price target.
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Source: crypto.news
