Ethereum Loses Ground Ahead of Historically tough Month
Ethereum (ETH) has seen its value drop over the last three days, dipping to $2,500. This represents a 9.8% fall from its recent monthly peak. Despite this decline, ETH has performed better than most altcoins, which are experiencing drops exceeding 15%.
The pullback is linked to the start of June, traditionally Ethereum’s weakest month. CoinGlass data reveals that as 2016, ETH’s average June return is -7.4%, with a median return of -8.68%. June is also a rough month for Bitcoin (BTC), which sees an average return of -0.35%.
Though, historical trends are not always predictable.In March, ETH defied its usual four-year upswing, plummeting by 18%.It also fell by 31% in February, breaking a six-year winning streak.
Yet,there’s positive news as june begins. Ethereum seems undervalued, with the MVRV ratio, which compares market value and realized value, dipping to -0.074. an MVRV reading below 1 suggests the asset is cheap.
Plus, whales are scooping up ETH. They now hold 103.5 million coins, up from a recent low of 103.45 million. Additionally,Santiment data shows Wall Street investors have been purchasing ETH, with spot ETH ETFs experiencing inflows totaling over $3 billion this month.
From a technical viewpoint, the ETH price, now at $2,530, is recovering from its April 9 low of $1,385. It has crossed the 50-day moving average and may soon form a bullish flag pattern. A cup-and-handle pattern is also emerging, hinting at a potential price target of $4,185.
