During one of the most difficult periods in the asset’s history, Ethereum is approaching a milestone that few investors expected.
For the first time since trading began, $ETH If current market conditions continue into June, we could see three consecutive months of losses. Based on historical data, Ethereum has never closed in negative territory for three consecutive months.
Despite experiencing severe bear markets such as the 2018 financial crisis and the 2022 crypto winter, the asset was always able to break its losing streak with at least one positive closing price per month until three consecutive declines.
Starting from decline
Ethereum has already ended Q1 2024 down 29.1%. Additionally, there was no rest in the second quarter. The second quarter is currently in negative territory, due to the slowdown in May. $ETH Their record-breaking monthly losing streak is in danger of continuing into June.
The technical situation supports the negative narrative. Ethereum is currently trading below the major moving averages after breaking out of a downward consolidation pattern. Bulls often fail to break out of the hierarchical resistance zones formed by the 50-day, 100-day, and 200-day moving averages, all of which are still above the current price.
Additionally, Ethereum is testing a significant psychological support level at around $2,000. Through much of the year, the asset has already lost momentum to Bitcoin, and institutional demand has not been robust enough to withstand continued selling pressure.
However, there may be a bright side. The Relative Strength Index enters oversold territory around 33, a level traditionally associated with seller fatigue. Significant recovery recoveries were often preceded by initial downturns, especially when pessimism was widespread.
As a result, Ethereum is at a critical tipping point. On the other hand, the market is about to produce an unprecedented and historic event: three consecutive months in the red. However, this unprecedented weakness could itself set the stage for a dramatic recovery if buyers begin to view current prices as a desirable long-term entry point.
The coming weeks will determine whether Ethereum makes unwanted history or manages to avoid it at the last minute. Either way, this asset is about to enter one of the most interesting phases of the market cycle.
