Ethereum Stumbles as June’s Crypto Curse Looms—Will History Repeat?

Ethereum’s price takes a hit, and traders are bracing for June—a month that’s historically been brutal for crypto. Will the ’summer slump’ strike again, or is this just another dip for bulls to buy?

Market veterans shrug—after all, crypto winters and pump-and-dump schemes are just part of the ’decentralized finance experience.’

June is also Bitcoin’s (BTC) second-worst-performing month after September, with an average return of minus 0.35%. 

Seasonality does not always work out. For example, ETH dropped by 18% in March, bucking a four-year trend of gains. It also dropped by 31% in February, after recording positive gains in the last six consecutive years. 

Ethereum has some strong fundamentals as June kicks off. First, there are signs that the coin is cheap, as the closely-watched MVRV ratio has moved to minus 0.074. The MVRV ratio compares the market value and the realized value, with a reading of less than 1 signaling that an asset is undervalued. 

There are also signs that ethereum whales are buying the dip. They hold 103.5 million ETH coins, up from this week’s low of 103.45 million. Whale purchases is a highly bullish sign.

Wall Street investors have also continued to buy ETH this month. Spot Ethereum ETFs have had inflows in the last 10 straight days, bringing the cumulative inflows to over $3 billion. 

Ethereum price technical analysis

The daily chart below shows that Ethereum’s price bottomed at $1,385 on April 9 and then bounced back to the current $2,530. It has moved above the 50-day moving average and is slowly forming a bullish flag pattern.

This pattern comprises of a vertical line and a consolidation. 

Ethereum is also forming a cup-and-handle pattern, a popular continuation sign. The cup has a depth of about 50%, giving it a price target of $4,185.