The value of Ether is currently 15% lower than its peak of $4,091 from March 21. As the second-largest cryptocurrency by market capitalization, Ether has been experiencing a decline, losing 7.5% of its value over the past week.
Despite this downward trend, analysts are optimistic about Ether’s future potential among other altcoins. MN Capital founder Michaël van de Poppe expressed his confidence in the ETH ecosystem, highlighting its crucial support level in a post on social media platform X on June 14.
Van de Poppe’s comments come in the wake of a recent drop in Ether’s price following the approval of spot Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). The price of ETH plummeted by 13% to reach a low of $3,426 on June 13. However, the analyst believes that the momentum towards listing the Ethereum ETF will gradually lead to an uptrend.
Market intelligence firm IntoTheBlock data shows that Ether has strong support just below the $3,400 level, with a significant demand zone between $3,266 and $3,371. This zone has the potential to absorb any selling pressure that may push the price lower.
Technical analyst Yoddha noted that historical price action indicates that Ether’s return above yearly highs often precedes significant price growth. If history repeats itself, ETH could potentially reach $20,000, making it one of the most bullish cryptocurrencies.
The bullish sentiment around Ether is further supported by increased investor accumulation, as evidenced by significant outflows from centralized exchanges. This accumulation activity, coupled with upcoming bullish events like the potential spot Ether ETF launch, has contributed to positive market dynamics.
Data from CryptoQuant reveals that a substantial amount of ETH was withdrawn from exchanges between June 9 and June 11, signaling a strong bullish momentum for the smart contract token. Similarly, crypto analyst Daan Crypto Trades observed a significant outflow of ETH from Coinbase, suggesting increased whale activity and high demand-side pressure.
Overall, the combination of reduced supply on exchanges, increased whale accumulation, and positive market sentiment indicates the potential for Ether’s price to surpass $4,000 and enter a parabolic uptrend in the near future. Readers are advised to conduct their own research before making any investment decisions.