Ethereum prints 4 consecutive red monthly candles, but the data points to the bottom of ETH/BTC

Ethereum’s local token, Ethereum (ETH)Four consecutive red monthly candle registrations were signed after Altcoin fell 18.47% in March. Altcoin’s current market structure reflects a continued bearish trend not seen since the 2022 bear market.

With monthly closings falling below last month’s lows, analysts began to argue about whether ETH is approaching the bottom or whether Altcoin has more downsides.

Ethereum/Bitcoin Ratio hits new 5-year low

On March 30, the Ethereum/Bitcoin ratio fell to a five-year low of 0.021. ETH/BTC ratio measures the value of ETH to Bitcoin (BTC)the current decline highlights the poor performance of Ethereum against Bitcoin.

In fact, when the ETH/BTC ratio last fell to 0.021 in May 2020, the value of ETH was between $150-300.

Data from the token terminal show Ethereum’s monthly expenses fell to $22 million in March 20205, the lowest level since June 2020, indicating lower network activity and market interest.

Ethereum fees represent the cost of the user to pay transactions, which is affected by network demand. When network fees start to drop, it indicates a decrease in network utility.

Despite price action and income discomfort, Ethereum analyst venture capitalist explain The bottom of the ETH/BTC may occur in the next few weeks. The analyst hints at the bottom of potential between 0.017 and 0.022, suggesting that the ratio may drop further before recovery. Analysts say

“Perhaps another lower low RSI and another similarity to the 2018-2019 feeding tightening and QE cycle, maybe at the first higher high after May, and when the Fed ends QT&BEGIT QE, the first higher high high.”

Related: Ethereum price has fallen by nearly 50% since Eric Trump’s “Add ETH” recognition

Historically favors short-term bottom

Since its inception, ETH has been three or more bearish monthly candles five times, each time being the result of a short-term bottom. The chart below shows that the most back-to-back red months occurred in 2018, with seven months being seven, but the price rose by 83% after the correction.

In 2022, after three consecutive bearish months, ETH prices consolidated in the range of nearly a year, but the bottom is the third bearish candle for June 2022. Historically, the likelihood of Ethereum is 75% of the green month in April.

Based on past quarterly returns from Ethereum Rich experience Compared with other quarters, the second quarter saw the smallest shrinkage. With average earnings in Q2 as high as 60.59%, the positive April is likely.

Related: Why is Ethereum (ETH) price rising today?

This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.