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

Ethereum’s native token, Ether (ETH), registered its fourth consecutive red monthly candle after Altcoin fell 18.47% in March. Altcoin’s current market structure reflects a sustained bearish trend not seen since the 2022 Bear market.

With the end of each month at a low level in the previous month, analysts are beginning to debate whether ETH is approaching the bottom or whether there is more downside beyond Altcoin.

Ethereum/Bitcoin ratio is the newest low in five years

On March 30th, the Ethereum/Bitcoin ratio fell to a five-year low of 0.021. The ETH/BTC ratio measures the value of ETH against Bitcoin (BTC), and the current decline highlights the inadequate performance of ether against Bitcoin over the past five years.

In fact, the last time the ETH/BTC ratio was soaked at 0.021, ETH was valued between $150 and $300 in May 2020.

Token Terminal data shows that Ethereum monthly fees fell to $22 million in March 2020, down at the lowest level since June 2020, indicating low network activity and market interest.

Ethereum fees represent the cost that users pay for transactions, which is affected by network demand. As network charges begin to drop, network utilities are degraded.

Despite price action and mal lazy revenue, Ethereum analyst VentureFounder said the bottom of ETH/BTC could occur over the coming weeks. Analysts suggest a potential bottom between 0.017 and 0.022, suggesting that the ratio could drop further before recovery. The analyst said,

“Another low low RSI and another push down on another similarity with the 2018-2019 Fed Tainting & QE Cycle.

Related: Ethereum prices have fallen almost 50% since Eric Trump’s “addition” approval

Historic odds prefer short-term bottoms

ETH has registered more than three consecutive Bearish monthly candles five times since its establishment, each time it was a short-term bottom. The chart below shows that the most consecutive red moons occurred in 2018.

In 2022, after three consecutive months of bearishness, ETH prices were integrated for almost a year range, but the bottom was in the third bearish candle in June 2022.

Based on Ethereum’s past quarter returns, Altcoin experienced the lowest number of second quarter drawdowns compared to other quarters. The average return for the second quarter was 60.59%, so there is a possibility of a positive return in April.

Related: Why is Ethereum (ETH) priced up today?

This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.