- Ethereum’s February performance may follow historical bullish trends, but risks are emerging
- MVRV decline pointed to potential selling pressure, requiring close monitoring for future price movement
As February looms, Ethereum [ETH] is once again in the spotlight, with many wondering if it will continue its historically bullish trend during this month. In previous years, ETH has seen consistent price hikes as the month progressed, driven by growing institutional interest and the ongoing development of its ecosystem.
However, recent on-chain data paints a more cautious picture. In fact, Ethereum’s MVRV has dropped below its 160-day moving average – A signal that has often preceded significant price corrections in the past.
February – Ethereum’s historically strong month
Ethereum has consistently delivered robust returns in February, making it a standout month. February has registered remarkable gains in the past, such as 46.46% in 2024 and 48.09% in 2017. These surges outshine the monthly average and median performance, indicating a seasonal trend of February being particularly favorable for Ethereum.
This recurring strength can be attributed to greater market activity, often following slower starts in January. With Ethereum entering February 2025 after a modest 4.26% decline in January, market participants are optimistic that the strong February trend could repeat itself, potentially fueling a recovery and setting the stage for another impressive performance this year.
However, the on-chain data seemed to tell us a different story at press time.
Ethereum’s MVRV breaks below key support
Ethereum’s MVRV ratio dipped below its 160-day moving average, a development that has historically signaled potential downside risk.
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Author: Samantha LKM
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