Ethereum prices have been rebounded over the past three days as traders adjusted positions over the worst month historically.
Ethereum (ETH) has declined for three consecutive days, reaching a low of $2,500. This is a 9.8% drop from the monthly high. Despite the pullback, it is better than most altcoins, many of which have dropped by more than 15% from this month’s high.
ETH retreated before June. This is usually the worst month due to the start of summer. Coinglass data shows an average monthly performance of 7.4% for June since 2016. The median monthly return for June is minus 8.68%.
ETH Monthly Returns | Source: Coinglass
June is also the second performance month for Bitcoin (BTC) after September, and an average return of minus 0.35%.
Seasonality doesn’t always work. For example, ETH fell 18% in March, reducing the profit trend for four years. It also fell 31% in February after recording positive profits for the past six consecutive years.
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Ethereum has a strong foundation when June begins. First, there are indications that the coin is inexpensive as the closely watched MVRV ratio has moved to minus 0.074. The MVRV ratio is compared to a signal reading of less than 1, which indicates that the asset is undervalued.
There are also signs that the Ethereum whales are buying dip. They have a minimum of 103.45 million to 103.5 million ETH coins this week. Buying whales is a sign of very bullishness.
Ethereum whales and MVRV scores | Source: Santiment
Wall Street investors have also continued to buy ETH this month. Spot Ethereum ETF has influxed for the past 10 consecutive days, bringing cumulative influx to over $3 billion.
Ethereum price technology analysis
The daily chart below shows that Ethereum prices bottomed at $1,385 on April 9th and then returned to the current $2,530. It moves above the 50-day moving average and forms a pattern of bullish flags slowly.
This pattern consists of vertical lines and integration.
ETH Price Chart | Source: crypto.news
Ethereum also forms a popular continuation sign, a cup and handle pattern. The cup depth is about 50%, with a price target of $4,185.
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