Ethereum’s native token, Ether (ETH), has experienced a remarkable rally of approximately 67% in 2024 and shows potential for further upward movement in June, based on a combination of on-chain, fundamental, and technical indicators.
The price of Ether entered the breakout phase of its falling wedge pattern on June 1. A falling wedge is a bullish reversal pattern characterized by two converging trendlines that descend. According to technical analysis, this pattern is resolved when the price breaks above the upper trendline and rises by the maximum height of the wedge. On May 20, ETH’s price broke above the upper trendline of the wedge with increased trading volumes, confirming the potential for reaching the pattern’s upside target of around $4,255 by the end of June, representing a 12.65% increase from current levels.
Interestingly, the ongoing breakout also appears to be part of a bull flag pattern, which is characterized by two parallel, downward-sloping trendlines. As with falling wedges, bull flags resolve when the price breaks above the upper trendline and rises by the height of the previous uptrend. This suggests that ETH could reach $6,000 by the end of June or early July.
Furthermore, Ether’s potential to reach $4,000 is boosted by the accumulation of ETH by Ethereum’s richest whale cohort. Data from on-chain resource Santiment shows that entities holding 10 million to 100 million ETH have increased their supply by approximately 0.5% since May 20, coinciding with a 19.25% price boom. The accumulation continued after spot Ether ETFs received official approval from the SEC on May 23. On the other hand, entities with a balance of 1 million to 10 million ETH have seen a decline in their supply, indicating profit-taking. Additionally, the reserves of Ether across all crypto exchanges have also declined, suggesting that investors are withdrawing their ETH holdings and demonstrating a growing sentiment of hodling. This further increases the potential for Ether to continue rallying above $4,000 in June.
Analysts believe there is a legitimate possibility that spot Ether ETFs could launch by late June, following BlackRock’s decision to update the Form S-1 for its iShares Ethereum Trust (ETHA) with the SEC. The successful launch of Ether ETFs, accompanied by significant capital inflows, would indicate a rising demand for ETH and could push its price above $4,000 in the next 30 days.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.