Ethereum continues to underperform in the ongoing bull market cycle as the crypto asset records another bearish month, raising concerns about its potential to go parabolic in the short term. However, the month of February presents another chance for ETH to grow due to its notable performance in the month over time.
February Likely To Trigger Gains For Ethereum
In spite of bullish expectations in January, Ethereum has failed to produce a major price surge, with hopes now shifted toward February. While January has been underwhelming for ETH, February boasts of significant returns.
Market expert and investor Daan Crypto Trades contends that ETH is poised for potential upward momentum as its historical monthly price trends hint at February being a bullish month for the crypto asset. Looking at past performances, February has recorded gains 7 times out of 8 in the history of ETH.
One interesting thing about this data is the average returns per month. The reoccurring patterns of notable gains during the month are supported by increasing adoption and improving market sentiment.
Data shows that January to May are the best months in ETH’s history. Meanwhile, summer seasons are pretty bad for Ethereum with Bitcoin stealing the spotlight again as the altcoin underperforms during this period.
Even though February has been positive for ETH in the past, Daan Crypto Trades highlighted that traders should not base their decisions solely on historical returns. However, seasonality is a crucial factor in both cryptocurrencies and equities researched and considered by many investors.
Since the upcoming months appear bullish, it is likely that the asset will see a persistent uptrend. This way, Ethereum may gather the necessary momentum to reach a new all-time high in the short term.
Meanwhile, the next key levels to watch are the $4,000 and $4,100 price range as the altcoin gears up for a retest to these targets. Daan Crypto Trades noted that ETH’s upward momentum is testing the upper line of a massive falling wedge pattern.
Thus he believes another retest to these levels is probable once the altcoin breaks out of the pattern. At the price range, the analyst expects ETH to face a major setback, urging investors to monitor the trend closely.
ETH’s Undergoes A Strong Pullback
ETH has taken a major hit as bearish pressure mounts across the entire market, causing a drop close to the $3,000 mark. Data from CoinMarketCap shows that the altcoin has fallen by nearly 9% in the last 24 hours.
This sudden pullback has triggered fear and uncertainty within the community. Nonetheless, investors continue to demonstrate confidence in ETH as they persistently accumulate the altcoin amid recent volatility.
In the past day, its trading volume has increased by more than 120%. Historically, heightened buying pressure has served as a precursor for an upswing. Should this strong investor sentiment hold, Ethereum might undergo a rebound shortly.
Featured image from Adobe Stock, chart from Tradingview.com
