Will Ethereum see more gains in June? – THIS ratio says yes, here’s why – Crypto News – Crypto News
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Will Ethereum see more gains in June? - THIS ratio says yes, here's why Will Ethereum see more gains in June? - THIS ratio says yes, here's why

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Will Ethereum see more gains in June? – THIS ratio says yes, here’s why – Crypto News

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4 months ago

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  • ETH outperformance in May lifted the DeFi segment to the top-performing sector in May. 
  • ETH/BTC ratio formed a bullish pattern, suggesting the altcoin may extend its Q2 gains. 

In May, Ethereum’s [ETH] remarkable +40% surge lifted DeFi tokens to the top monthly performer by sector.

The DeFi segment posted an average of 14% gain in the past thirty days of trading, followed closely by memecoins at 10%, Velo market data showed. 

Source: Velo 

Interestingly, it was the first time in over a year that DeFi performed better than the memecoin narrative. Will ETH outperformance extend into June? 

Insight from ETH/BTC ratio

One of the barometers for ETH and DeFi market health is the ETH/BTC ratio, which tracks the relative price performance of the altcoin against BTC. 

At press time, the indicator formed a bullish inverse head and shoulder pattern, suggesting more upside potential for ETH against BTC, noted analyst BitcoinData21. 

Ethereum

Source: BitcoinData21/X

If validated, ETH could outperform BTC by 36% if the ratio rises from 0.02 to 0.03. For context, the May pump and overall DeFi boost happened after the altcoin posted 40% gains over BTC. 

A similar positive outlook was shared by crypto options analytics firm Amberdata, citing market positioning and the ETH corporate treasury trend. 

“Hearing SharpLink allocate treasury towards ETH ownership is also a strong sentiment signal that supports the ETH rally higher, especially if other corps follow.”

For perspective, SharpLink Gaming announced a $425 million capital raise last week to fund its ETH treasury strategy. Over 20 companies have jumped on the trend, buying over 980K ETH (worth over $2.4B) at press time. 

At the same time, selling pressure tapered in May, further supporting the positive prospects for ETH.

Notably, Realized Profit peaked at +$1B during the May pump, nearly rivaling the $1.2B seen last December after ETH tagged $4K.

But profit-taking eased significantly in late May and early June, a trend that could allow the altcoin to rally. 

Ethereum

Source: Glassnode

On the price charts, ETH consolidated above the 200-day EMA (Exponential Moving Average, blue) after the May pump.

The altcoin may extend the $2300-$2800 price range in the short term before a strong catalyst determines the next breakout direction. 

Ethereum

Source: ETH/USDT, TradingView 

That said, renewed macro headlines linked to global tariffs and the Russia-Ukraine war may complicate the bullish outlook. Hence, tracking these macro factors may be crucial for risk management. 

Next: Countdown to Fed’s decision: Is Bitcoin’s $100K support on the brink?

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