Ethereum lost a considerable amount of its value over the last two months. It retraced by more than 20% from its peak in August. With this in mind, many traders expect a full recovery this month.
Before the start of the current 30-day period, the standing sentiment of “BTC always performs better in October” gained a lot of ground. Unfortunately, price action during the first two days dampened this resolve.
Nonetheless, ETH just recorded its first green following two reds. Many may conclude that this may be the start to another bullish round, while others are on the fence but hoping prices improve. What factors could affect the largest altcoin’s performance this month?
Fundamentals
As usual, the first on the list are fundamentals. From the previous 30-day period, we saw how the lack of bullish news played out. Unfortunately, there are no foreseeable stories that may positively affect price action.
Additionally, there are no upcoming events. Nonetheless, external events like the Federal Reserve Board meetings may cause FUDs or FOMO and there is none slated for October. We may conclude that the second largest cryptocurrency may follow previous trends.
Ethereum is Bound to See More Uptrends
Historically, October is a month that offers solace to traders after massive downtrends in September. The image below confirms this claim. We noticed a sharp contrast between both months when we pay more attention to the averages.
Since its introduction to the market in 2015, six years have passed. Of these Octobers, ether recorded significant losses in just two and was bullish in four. The highest it gained during this period is 43% while the largest loss is 17%.
On average, the largest altcoin gains 4.7% every October. There is no doubt that the tenth 30-day period of the year is favorable.
Based on the average, we may expect ether to gain more than 4%. Although this figure seems meager, it is the most realistic. This means that the coin is gearing up for massive price action. Let’s see what the charts say.
Ethereum is at Crossroads
It is important to bear in mind that ether’s performance may be highly dependent on chart patterns. Looking at the asset from a long-term point of view, we may conclude that it is at a very crucial point.
The chart above is a 1-week timeframe. A closer look at the chart reveals a bear flag. This means that the asset under consideration is gearing up for an uptrend. it is possible that ether has bottomed out or may have another bearish round before the breakout.
Either of the highlighted scenarios taking place spells goodwill for the altcoin. We may expect another period of downtrends but recovery is almost certain provided ETH follows the price pattern. There are several indicators on the daily chart that back up this claim.
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Source: https://coinfomania.com/ethereum-price-analysis-eth-sees-its-first-green-a-sign-of-uptober-in-gearing-up/