Ethereum may be gearing up for a few rough months ahead in the crypto markets. This is according to an analysis shared by Timothy Peterson of Cane Island Alternative Advisors, where he highlighted Ethereum’s historically poor performance during the summer months.
He shared his analysis through the following statement and accompanying chart.
Ethereum may be in for a rough few months. After a phenomenal 6-month streak of +670%, I would not be surprised if ETH takes a vacation during the summer, a time when it has historically performed very poorly.
Ethereum’s $2k is Still the Level to Watch
With respect to price action, Ethereum continues exhibiting weakness after being rejected at the $2,890 price area on Monday this past week. This price area coincides with the $2,800 resistance level and the 50-day moving average (white) as highlighted in the following chart.
Also from the chart, it can be observed that the $2k support is Ethereum’s next line of defense after the 100-day moving average (yellow) caved in due to selling pressure at the $2,400 price area. Ethreum is currently trading at $2,360 with the weekly close only hours away.
If Ethereum can maintain a value above $2k, it could possibly open the doors to a brief recovery back above $2,500. However, the daily MACD, MFI and trade volume, point towards a continual level of selling by Ethereum traders that could lead to more losses ahead.
In the event Etheruem’s $2k support is lost, ETH will have to rely on the 200-day moving average at the $1,800 price area, as its last hope in maintaining a bullish narrative into the summer.
