Ethereum’s native token, Ether (ETH), is up approximately 67% so far in 2024 and has…

Ethereum’s native token, Ether (ETH), is up approximately 67% so far in 2024 and could continue its upward trend in June, according to a mix of on-chain fundamental and technical indicators.

Falling Wedge Breakout Has ETH Price Eyeing $4,000

Since June 1, Ethereum has entered the breakout phase of the current falling wedge pattern.

A falling wedge is a bullish reversal pattern characterized by two converging downtrend lines. As a general rule of technical analysis, this pattern is resolved when price breaks above the upper trendline and increases by the maximum height of the wedge.

On May 20, ETH price broke out of the upper trendline of the wedge with an increase in trading volumes, confirming its trend to reach the uptrend target at around $4,255 by the end of June, up 12.65% from current price levels. .

ETH/USD daily price chart. source: Trading View

Interestingly, the sustained breakout also appears to be part of a bull flag pattern, characterized by two parallel downward-sloping trendlines.

ETH/USD daily price chart. Source: Commercial View

As a general rule of technical analysis, bull flags are resolved when price breaks above the upper trendline and rises to the height of the previous uptrend. This puts ETH on track to reach $6,000 by the end of June or early July.

Richest Ethereum Whales Collect ETH

The possibility of Ether reaching $4,000 receives further support from the richest group of whales.

According to on-chain data resource Santiment, the supply of ether held by entities owning between 10 million and 100 million ETH (black) has increased by approximately 0.5% since May 20, when rumors surfaced. surfaced that the United States Securities and Exchange Commission (SEC) was beginning to reconsider its decision in immediately rejecting the Ether ETF.

Distribution of ether reserves among whales. Source: Santiment

The accumulation coincided with a 19.25% rise in ETH/USD prices. It continued to grow after Ethereum ETFs received official approval from the Securities and Exchange Commission on May 23.

Conversely, the supply of Ether held by entities owning between 1 and 10 million ETH (brown) fell sharply during the ETH price surge, indicating profit-taking. But, at the same time, ether reserves on all cryptocurrency exchanges have recently declined sharply.

Ethereum exchange reserves. Source: Cryptoquant

This shows that most investors are withdrawing their Ethereum holdings from cryptocurrency exchanges – a sign of growing holding sentiment, raising the possibility that Ethereum will continue to surpass $4,000 in June.

SEC May Approve Ethereum Spot ETFs in June

There is a “legitimate possibility” that US exchange-traded funds (ETFs) for Ethereum (ETH) could launch by the end of June following BlackRock’s decision to update its Form S-1, analysts say. iShares Ethereum Trust (ETHA) with a second.

“It’s a good sign. We’ll probably see the rest soon,” Bloomberg ETF analyst Eric Balchunas commented in a May 29 article about Bitcoin trading in the days leading up to its launch.

Related: Spot Ethereum ETF ‘Fee War’ Begins as Franklin Templeton Reveals Fees

Spot Bitcoin ETFs have seen a net inflow of $13.85 billion since their launch in January.

Cumulative Bitcoin ETF Flows. Source: Farside Investors

The successful launch of Ethereum ETFs in June, accompanied by large capital inflows, indicates growing demand for Ethereum. These factors could push Ether price above $4,000 over the next 30 days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

Leave a Reply

Your email address will not be published. Required fields are marked *