Will ETH increase more in June?

In May, the notable rise to the sky of +40% for Ethereum (ETH) made DeFi tokens the highest performing group on a monthly basis across sectors.

According to market data from Velo, the DeFi sector recorded an average rise to the sky of 14% in the past 30 trading days, closely followed by memecoins with a rise to the sky of 10%.

Source: VeloThis is the first time in over a year that DeFi has outperformed memecoins. Will the upward momentum of ETH continue into June?

Perspective from the ETH/BTC ratio

One of the indicators reflecting the situation of the ETH and DeFi market is the ETH/BTC ratio, which tracks the relative price performance of this altcoin against BTC.

At the time of writing, the indicator has formed an inverse head and shoulders pattern – a bullish signal, indicating the potential for further growth of ETH/BTC, according to analysis by the expert BitcoinData21.

Source: BitcoinData21If confirmed, ETH could outperform BTC by up to 36% if the ETH/BTC ratio rises from 0.02 to 0.03. To clarify, the price surge in May and the overall recovery of DeFi occurred after this altcoin recorded a 40% increase compared to BTC.

The crypto options analysis company Amberdata also shares a similar positive outlook, based on market position and the trend of holding ETH in corporate treasuries.

"SharpLink allocating funds to buy ETH is a strong psychological signal supporting the price increase – especially if other companies follow suit."

Last week, SharpLink Gaming announced that it had raised 425 million dollars in capital to implement a strategy of holding ETH in its treasury. More than 20 companies have participated in this trend, collectively purchasing over 980,000 ETH worth more than 2.4 billion dollars at the time of reporting.

At the same time, selling pressure has gradually decreased in May, further strengthening the positive outlook for ETH.

Notably, reasonable profits peaked at over 1 billion dollars during the price surge in May, nearly matching the 1.2 billion dollars recorded last December after ETH hit the milestone of 4,000 dollars.

However, profit-taking activity has significantly decreased at the end of May and the beginning of June – a trend that could pave the way for ETH to continue to rise to the sky.

!()https://img.gateio.im/social/moments-bc749a13e1e883c877a37f25a5dc2da1[ETH]Source: GlassnodeOn the price chart, ETH has consolidated above the 200-day exponential moving average (EMA 200, in green) after the price surge in May.

In the short term, the altcoin may continue to fluctuate in the price range of $2,300 to $2,800 before a strong catalyst emerges to determine the direction of the next breakout.

ETH Price Chart | Source: TradingViewHowever, new macroeconomic news related to global tariffs and the Russia–Ukraine war may complicate the bullish outlook.

Therefore, monitoring these macro factors can play an important role in risk management.

Dinh Dinh