Ethereum’s June Rally Looks Inevitable – This Key Metric Screams Bullish

Forget the Wall Street tea leaves—Ethereum’s on-chain data paints a clearer picture. One ratio suggests ETH’s June gains aren’t just probable, they’re practically baked in.

Here’s what the charts won’t tell you: While traditional markets obsess over Fed whispers, crypto’s plumbing shows real money moving. The ’smart money’ accumulation metric just flashed its most bullish signal since the last cycle’s peak.

Bonus reality check: If this prediction fails, blame the usual suspect—some hedge fund manager probably dumped his bags to buy another yacht.

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. 

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. 

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. 

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.