Ether (ETH), the native token of Ethereum, has experienced a substantial rally of approximately 67% in 2024. It is expected to continue its upward movement in June, based on a combination of on-chain, fundamental, and technical indicators.
The price of Ether has entered the breakout stage of a falling wedge pattern as of June 1. A falling wedge pattern is a bullish reversal pattern characterized by two descending, converging trendlines. 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 its potential to reach 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. According to technical analysis, 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.
The accumulation of Ether by Ethereum’s richest whale cohort further supports the potential for ETH to reach $4,000. Data from Santiment shows that entities with a balance of 10 million to 100 million ETH have increased their holdings by approximately 0.5% since May 20. This accumulation coincided with a 19.25% price boom for ETH/USD. Conversely, entities with a balance of 1 million to 10 million ETH have decreased their holdings, indicating profit-taking. However, the overall Ether reserves on crypto exchanges have declined significantly, suggesting an increasing hodling sentiment among investors and further fueling the potential for ETH to rally above $4,000 in June.
Analysts believe that there is a legitimate possibility of U.S. spot Ether ETFs launching by late June. This belief is supported by BlackRock’s decision to update the Form S-1 for its iShares Ethereum Trust (ETHA) with the SEC. If spot Ether ETFs are approved and experience significant capital inflows, it indicates a rising demand for ETH and has the potential to 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. Investors should conduct their own research and analysis before making any investment decisions.