Ethereum historically rises in February and March
Ethereum may have started many years on a more positive note than this year’s performance if one looks at its price chart history. Even so, investors are currently on the edge of their seats as they monitor the Ethereum price performance to see if it turns bullish in February and March, as the asset accustomed the world to. Historically, Ethereum rose in the last two months of the first quarter of the year. The only exception when it dropped was in February 2018, and after it had already gained 50% the prior month. Other than that, Ethereum has marked earnings every February over the last six consecutive years. The most outstanding increase came last year, when the Ethereum price rose by more than 46%, namely from $2,280 to $3,380. Even more, ETH registered a 48% increase in February 2017, soaring from a humble $11 price tag to a bit under $16. It’s this historical trend that instills confidence in a bullish period and sentiment for Ethereum this February.
Ethereum registered a decline of approximately 7% in this year’s first month, unlike its peers that recorded gains. Nevertheless, analysts draw attention to the digital asset’s historical performances registered around this time of the year. February and March usually bring good fortune for Ethereum and possessors of ETH. So, what’s more likely to occur as February draws closer? Industry analysts and experts weigh in, so let’s discover the latest insights that could point the ordinary investor or enthusiasts in a likelier direction as to what could be on Ethereum’s near-present agenda.
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L2 ecosystem improvements
The meme coin ecosystem and bigwigs in Ethereum Layer-2 ((L2) solutions are tread carefully these days. Executives from principal Ethereum L2 networks, such as Optimism and Base, summarized plans to increase the smart contract platform’s security and unification through “native” and “based” rollups. FYI, native rollups should make the network more composable as the transactions carried out on the base layer encounter improvements. On another note, a big Ethereum-based whale known as “marketparticipant.eth,” conducted a $4.9MN PEPE Coin token sell-off, celebrating the end of a strategic 10-month accumulation phase.
Ethereum is famed for undergoing constant updates that help reduce off-chain processing times and the consequent fees. Developments in Ethereum’s L2 ecosystem, like the abovementioned ones, have the power to improve network unity and decentralization. At the same time, Paradigm promotes speedier protocol updates to tackle the heightened market demands. In the meantime, investors monitor the actions of the Federal Reserve, which momentarily sends mixed signals and triggers uncertainty.
A red flag on the horizon
The Ethereum Foundation, aka EF, has recently vended another round of 100 ETH for 307,893 of the stablecoin tied to the USD – DAI. The asset is generated on the Ethereum blockchain by MakerDAO and is momentarily the ruling decentralized stablecoin. Noteworthy, it uses smart contracts created to keep its supply in control and the value as close to the USD as possible.
This undertaking represents the third time that the foundation has sold Ethereum, which can only leave investors confused as to how their investments might perform as a consequence of the sales. As of January 27, the organization has traded 300 Ethereum for about $981,200. The uninterrupted selling pressure generated by the organization’s activities has added to ETH’s price struggles. Nevertheless, the EF still possesses a considerable amount of the token. Data suggests that the NGO holds Ethereum worth over $800MN at current market prices.
The only February fail
Ethereum has only felt short once, in February 2018, after coming off of a 50% increase in the month before. CoinMamba, a seasoned trader and analyst, shared on X a graphic with the usual gains registered by Ethereum in the months of February and March. This post provided some “hopium” for investors as to the token’s performance over the two months in question. According to the guru, hope isn’t lost for Ethereum. The history has so far reproduced as Ethereum has marked a 46.3% price increase since January of this year.
Another crypto trader, Crypto Rover, has disclosed their chart analysis, which aligns with the asset’s prediction of inflating in price over the following few months. They’re confident that the second-best crypto has yet to exit the current “massive uptrend,” meaning that there’s no reason to fall prey to FUD.
ETH, yet to demonstrate all it can
Feelings of fear and FUD still occur among some skeptics, and reasonably so. The cryptocurrency market is known for being capable of changing by 180 degrees without notice. Barely could’ve one predicted that XRP, SOL, and SUI would steal the show from Ethereum. Yet, it happened, as the assets registered fascinating growth. Analysts believe that Ethereum hasn’t experienced the well-awaited bullish momentum yet. It’s far from reaching the ATH of $4,878 registered in November 2021; yet, this milestone isn’t excluded for the upcoming months.
Crypto analyst Mister Crypto’s recent analysis indicates that Ethereum has possibly bottomed out, with a price rally being about to happen for the smart contract platform token. On the same note, another analyst suggested that the cryptocurrency is undergoing what’s known as the inverse head-and-shoulders pattern, or a post-downtrend reversal, on a 3-day chart. This is regarded as a bullish sign for the crypto.
Noteworthy, February and March might not be the only good months for Ethereum. Ethereum has only trended negatively in two out of the last nine years, marking six uptrends in Q2’s first month.
What might be on the horizon?
The sentiment among Ethereum enthusiasts is somewhat optimistic these days despite its recent drop. This positivity occurs against a backdrop of leadership transformations at the Ethereum Foundation. The vibration within the community has changed – an even more solid commitment towards more progress primes. For this and many other safety-related reasons, you want to keep an eye out for ETH’s price performance if you ever plan to invest in it, should you be yet to join the investors’ table. Tread carefully!
