Foreign media reports suggest that Ethereum is approaching a phase never seen before: if it continues to decline in June, ETH will record its first three consecutive months of monthly losses since its listing. The article argues that this trend reflects the fact that Ethereum's weakness this year has not yet reversed.
Performance continued to be under pressure throughout the year.
The article mentions that Ethereum had already fallen by 29.1% in the first quarter of 2024, and had not shown a significant recovery in the second quarter. The continued weakness in May has led the market to focus on whether June will extend this decline into a third month.
Even during the 2018 crash and the 2022 crypto winter, Ethereum had never experienced three consecutive months of monthly declines. Based on this, the article argues that the current level of weakness is approaching historically rare levels.
Prices remain suppressed by moving averages.
The article states that ETH is currently trading below its major moving averages, and its rebound has been repeatedly thwarted after breaking below its consolidation range. The 50-day, 100-day, and 200-day moving averages remain above the current price, forming a relatively dense resistance level.
Meanwhile, the $2,000 level is considered a key psychological barrier. The article notes that Ethereum has lagged behind Bitcoin for most of the year, and institutional demand has failed to significantly offset persistent selling pressure.
- Key level to watch: Approximately $2,000 psychological threshold
- Resistance areas: 50-day, 100-day, and 200-day moving averages
- Current context: Underperforming Bitcoin this year
Oversold signals bring expectations of a rebound.
However, the article also mentions a possible buffering factor. The Relative Strength Index (RSI) is approaching 33, entering near-oversold territory. Based on past market experience, this level often indicates that selling pressure is beginning to weaken.
The article argues that if buying activity picks up in the coming weeks, the current extreme weakness could actually be the start of a phase of recovery. The market will then focus on whether Ethereum sets a new record for three consecutive months of declines or halts its fall before the end of June.
