ethereum Faces June Slump, But Fundamentals Stay Strong
Ethereum’s price has slipped in the last three days as traders prepare for June, historically its roughest month. ETH fell to $2,500, down 9.8% from its recent high. However, it still outperforms many altcoins, which have seen greater declines.
June is frequently enough tough for ETH, with an average monthly drop of 7.4% as 2016. CoinGlass data reveals a median loss of 8.68% for this month. Even Bitcoin tends to struggle in June, posting an average 0.35% loss.
Seasonal trends aren’t definitive. ETH fell 18% in March, breaking a four-year positive run. It also dropped 31% in February, despite six consecutive years of gains.
Yet, ETH’s fundamentals remain robust heading into June. The MVRV ratio, comparing market value to realized value, is at -0.074, suggesting ETH is undervalued. Whales are also buying, holding 103.5 million ETH, up from this week’s low. Wall Street has poured over $3 billion into spot Ethereum ETFs this month.
Technically,ETH’s price chart shows promise.It bounced back from $1,385, surpassing the 50-day moving average. A potential bullish flag pattern is forming,hinting at an upside move.The cup-and-handle pattern suggests a $4,185 price target.
