The price of Ether is currently 15% lower than its multi-year high of $4,091, which was reached on March 21. Over the past week, the second-largest cryptocurrency by market capitalization has experienced a downtrend, losing 7.5% of its value.
Despite this recent performance, analysts are optimistic about Ether (ETH) and believe it still has significant upside potential compared to other altcoins. Michaël van de Poppe, the founder of MN Capital, expressed his confidence in the ETH ecosystem and highlighted a crucial support level in a post on the X social media network dated June 14.
Following the approval of spot Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC), Ether’s price experienced a 13% drop to a swing low of $3,426 on June 13. However, van de Poppe believes that the momentum towards listing the Ethereum ETF will gradually lead to an uptrend in the price.
Market intelligence firm IntoTheBlock data indicates that ETH has strong support just below the $3,400 level, with a demand zone between $3,266 and $3,371. This area has the potential to absorb any selling pressure and prevent the price from falling further.
Technical analyst Yoddha noted that Ether had bounced off this support level in the past and produced a candlestick close above its yearly highs on the 12-day timeframe. Historically, a return above yearly highs has preceded exponential price growth, with Yoddha suggesting a potential upside target of $20,000 for ETH.
Investor accumulation of Ether has been increasing, as seen in the massive outflows from centralized exchanges. This accumulation activity, combined with bullish events like the anticipated launch of a spot Ether ETF market, has contributed to Ether’s bullish outlook.
Crypto analyst Daan Crypto Trades also observed significant net outflows of ETH from the U.S.-based crypto exchange Coinbase on June 11, coinciding with the largest correction in the altcoin since April 30. This increased whale activity and reduced supply on exchanges suggest a supply deficit that could drive Ether’s price above $4,000 and lead to a parabolic uptrend.
Overall, the combination of increased investor accumulation, reduced supply on exchanges, and bullish market events indicates a positive outlook for Ether’s price movement in the near future. Readers are advised to conduct their own research before making any investment decisions.