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▲ Ethereum (ETH)
Ethereum (ETH) is facing the possibility of 3 consecutive months of monthly losses for the first time ever, standing on the brink of a dishonorable record it managed to avoid even during the 2018 crash and the 2022 crypto winter.
According to U.Today, a cryptocurrency specialized media outlet, on May 31 (local time), if current market conditions persist until June, Ethereum could record 3 consecutive months of monthly losses for the first time since its trading began. U.Today reported that although Ethereum experienced severe bear markets in the past, it broke the downward trend with at least one positive monthly close before the third consecutive monthly decline.
Ethereum closed Q1 2024 with a 29.1% decline. The rebound trend was not clear in Q2 either, and with the bearish trend continuing in May, the risk of a record-breaking monthly loss streak continuing into June has increased. U.Today assessed that Ethereum is going through one of the most challenging periods in its asset history.
Technical trends are also negative. Ethereum has broken out of a downward channel and is trading below key moving averages. The 50-day, 100-day, and 200-day moving averages are all above the current price, creating a multi-layered resistance zone, and buying pressure has failed to break through this resistance multiple times.
Ethereum is currently testing the key psychological support level of approximately $2,000. U.Today reported that Ethereum has underperformed against Bitcoin (BTC) for most of this year, and institutional demand has not been strong enough to withstand the continuous selling pressure.
However, the Relative Strength Index (RSI) has fallen to around 33, entering the oversold zone. U.Today stated that strong recovery rallies often appeared after past bearish periods and the spread of pessimism, pointing out that whether Ethereum sets this dishonorable record or avoids it with a last-minute rebound will be decided in the coming weeks.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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