Ethereum Price Analysis: A Double Bottom Reversal is the Likely Culprit

Ethereum is a smart contract platform and cryptocurrency that enables anyone to build and use decentralized applications. It's also the second largest cryptocurrency by market cap, after bitcoin.

The price of ether has been on a tear lately, rising more than 40% over the past week. Ether hit an all-time high of $ 1,370 on June 13.

But now, the price of ether is hovering around the yearly low of $ 810. That's a big fall from its recent highs but it's not unusual for the price of ether to drop below yearly lows during this summer season.

On Tuesday, Ethereum was trading at $ 917.50 according to CoinMarketCap data. The coin has lost about 10% since reaching its current level around June 20.

The annual low for ether was set in mid-June when it was trading at $ 571.70 before rebounding slightly later in the month.

If you look at historical data going back to 2014, you'll see that Ethereum has traded between $ 50 and $ 600 during most months throughout each year except for December 2015 through January 2016 when it dropped as low as $ 145 before rebounding