Ethereum has experienced a noticeable decline in its price over the past three days, with traders adjusting their positions ahead of June, historically considered one of Ethereum’s weakest performing months.
Ethereum’s price reached a recent low of around $2,500, representing a drop of roughly 9.8% from its monthly high. Although Ethereum has experienced losses, its recent performance still remains stronger than many other altcoins, which have generally seen declines exceeding 15% from their monthly peaks.
June has typically been a challenging month for Ethereum investors. Data indicates that since 2016, Ethereum’s average price movement in June is negative 7.4%, with a median monthly loss of 8.68%. For comparison, Bitcoin’s second-poorest monthly performance also falls in June, averaging a return of negative 0.35%.
However, it’s important to note that seasonal trends aren’t always reliable predictors of future outcomes. Ethereum previously defied its track record in March, posting an 18% drop rather than the expected gains, and similarly declined by 31% in February, after six straight years of positive returns in that month.
Despite recent headwinds, Ethereum continues to exhibit encouraging fundamentals. The Market Value to Realized Value (MVRV) ratio, a key indicator watched closely by analysts, has fallen to negative 0.074. Typically, an MVRV below 1 signals that the asset could be currently undervalued, suggesting a possible buying opportunity.
Indeed, large Ethereum holders, commonly called “whales,” have increased their holdings throughout the recent dip. Whale-held Ethereum coins have risen slightly to approximately 103.5 million ETH, moving upward from their weekly low of about 103.45 million ETH. Whale purchases often indicate bullish sentiment, adding optimism about Ethereum’s potential recovery.
Further reinforcing this positive outlook, institutional investors on Wall Street have shown consistent interest. Spot Ethereum ETFs reported net inflows for ten consecutive days, leading to cumulative investments surpassing $3 billion in recent weeks alone.
Technical analysis currently also indicates a cautiously optimistic view. Ethereum successfully bottomed at $1,385 in early April and has since rallied to its current price region near $2,530. The price now stands above its 50-day moving average and is consolidating to potentially form a bullish flag formation—a known continuation pattern usually interpreted positively among traders.
Additionally, the price action suggests Ethereum is developing what technical analysts identify as a “cup-and-handle” formation, again commonly interpreted as a bullish continuation chart pattern. Analysts have pointed out that this particular cup-and-handle has a depth of approximately 50%, establishing an upward technical price target around $4,185, should the formation fully materialize.
Overall, while recent price declines and Ethereum’s troubling seasonal record in June remain points of caution, strengthening fundamentals and supportive market signals from institutions and large whale investors may provide Ethereum with a positive underpinning in the longer term.
