Ethereum

Silver

Amid the broader market correction, the <a href="https://coingape.com/markets/will-ethereum-price-hit-10000-if-the-sec-changes-tune/" rel="noopener noreferrer nofollow">Ethereum coin</a> witnessed a three-day losing streak with its price falling from $3286 to $2888 accounting for 12%. The recent fall backed by increasing volume hints at the sellers’ conviction to lead the asset value lower as BTC goes Sub-60K. However, an analysis of the daily chart shows the correction still holds above a healthy retracement level and keeps the bullish pattern intact for a potential reversal. 
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<h2 id="strong-ethereum-s-falling-wedge-hints-a-silver-lining-in-the-bearish-cloud-strong">Ethereum’s Falling Wedge Hints a Silver Lining in the Bearish Cloud</h2>
<figure style="width: 100%" class="wp-caption alignnone"><img decoding="async" src="https://s3.tradingview.com/snapshots/f/FwYAWc9S.png" alt="BITSTAMP:ETHUSD Chart " width="1946" height="893">
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 Ethereum Price| Tradingview
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In the past seven weeks, the <a href="https://coingape.com/price-predictions/ethereum-classic-etc-price-prediction/" rel="noopener noreferrer nofollow">Ethereum price</a> has shown a textbook example of a downtrend with new lower highs and lows in the daily chart. This price swing connected with downsloping trendlines reveals a falling wedge pattern which is a bullish continuation setup often spotted in an established uptrend.
<blockquote>
 Under the influence of this pattern, the <a href="https://coingape.com/ethereum-price-whale-dumps-6m-eth-amid-crypto-crash/" rel="noopener noreferrer nofollow">ETH price</a> plunged from a $4084 high to its current trading price of $2899, registering a 30% fall. If the broader market selling persists, this altcoin may fall another 6% to hit a lower trendline at $2700.
</blockquote>
The aforementioned level coinciding with the 50% retracement level and 200-day EMA slope created a high demand zone for buyers to counterattack. The renewed demand pressure at $2700 will indicate an initiate sign of local bottom formation.&nbsp;
However, the buyers would need an upside breakout from the wedge pattern to develop a renewed recovery trend.
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<h2 id="strong-historical-returns-hints-ethereum-price-recovery-in-may-strong">Historical Returns Hints Ethereum Price Recovery In May</h2>
<figure id="attachment_194678" aria-describedby="caption-attachment-194678" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-194678" src="https://coingape.com/wp-content/uploads/2024/05/image_2024-05-01_21-13-35.png" alt="Ethereum Monthly returns" width="667" height="683" srcset="https://coingape.com/wp-content/uploads/2024/05/image_2024-05-01_21-13-35.png 667w, https://coingape.com/wp-content/uploads/2024/05/image_2024-05-01_21-13-35-293x300.png 293w, https://coingape.com/wp-content/uploads/2024/05/image_2024-05-01_21-13-35-150x154.png 150w" sizes="(max-width: 667px) 100vw, 667px">
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 Ethereum Monthly returns| Coinglass
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Ethereum’s historical performance in May shows significant volatility with a mixture of substantial gains and losses over the years. So far In May 2024, the asset saw a modest decrease of -3.79%, while in 2023 a slight increase of +0.16%. Notably, May 2022 experienced a sharp decline of -28.84%.&nbsp;
In contrast, May 2017 and 2019 saw impressive surges of +161.43% and +56.65% respectively, highlighting the potential for high returns despite overall instability. Furthermore, the ETH price witnessed losses in years like 2018 and 2021, which posted -13.96% and -2.31% respectively.&nbsp;
However, the average gain of +23.66% suggests a higher potential for Ethereum to rebound and keep a bullish outlook this month.
<h3 id="strong-technical-indicator-strong">Technical Indicator</h3>
<ul>
 <li aria-level="1">Average Directional Index: The ADX slope uptick near 23% indicates the sellers are gaining momentum for a prolonged downfall.</li>
 <li aria-level="1">Exponential Moving Average: The ETH price trading above the 200-day <a href="https://coingape.com/education/exponential-moving-average-how-to-leverage-it-in-crypto-market/" rel="noopener noreferrer nofollow">EMA</a> slope accentuates the broader market sentiment remains positive.</li>
</ul>
The post <a href="https://coingape.com/markets/what-historical-trends-hint-for-ethereum-price-behavior-in-may/" rel="noopener noreferrer nofollow">What Historical Trends Hint for Ethereum Price Behavior in May?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

What Historical Trends Hint for Ethereum Price Behavior in May?

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