Ethereum’s native token, Ethereum (ETH), is up about 67% so far in 2024 and could continue to rally in June, depending on a mix of on-chain, fundamental, and technical indicators.
Due to the falling wedge breakout, ETH price is targeting $4K.
As of June 1, Ethereum has entered the breakout phase of a typical descending wedge pattern.
A falling wedge is a bullish reversal pattern characterized by two downward converging trend lines. According to the rules of technical analysis, this pattern is resolved when the price breaks the upper trend line and rises by the maximum height of the wedge.
On May 20, the price of ETH broke above the upper trend line of the wedge with increasing trading volume, confirming our bias that the pattern’s bullish target would be reached by the end of June at around $4,255, up 12.65% from current price levels.
Interestingly, the ongoing breakout appears to be part of a bullish flag pattern characterized by two parallel downward trend lines.
According to the principles of technical analysis, a bullish flag is resolved when the price breaks the upper trend line and rises by the height of the previous uptrend. This puts ETH on a path to $6,000 by late June or early July.
Ethereum’s richest whales accumulate ETH.
Ether’s potential to reach $4,000 is further boosted by the richest group of whales.
According to Santiment, an on-chain data resource, the supply of Ethereum held by companies with balances between 10 million and 100 million ETH (black) has increased by about 0.5% since May 20, when rumors of a U.S. Securities and Exchange Commission (SEC) complaint circulated. I did. A review of the spot Ether ETF rejection has begun.
This accumulation coincided with a 19.25% ETH/USD price boom. The spot Ether ETF has continued to grow since receiving official approval from the SEC on May 23rd.
Conversely, Ethereum supply (brown) held by private companies with 1 to 10 million ETH balances (brown) declined sharply during the ETH price rally, suggesting profit-taking. But at the same time, Ether holdings on all cryptocurrency exchanges have recently fallen sharply.
This shows that most investors are withdrawing their ETH holdings from cryptocurrency exchanges. This is a sign that holding sentiment is increasing, which increases the likelihood that Ether will continue to rise above $4,000 in June.
SEC likely to approve spot Ether ETF in June
BlackRock files Form S-1 for iShares Ethereum Trust (ETHA), according to analysts.
“This is a good sign. The rest will be coming soon,” Bloomberg ETF analyst Eric Balchunas wrote in a post to X on May 29. Balchunas previously predicted that spot Ether ETFs would account for 10-15% of the overall market. A wave of Bitcoin ETF discoveries emerged early after launch.
Related: Spot Ethereum ETF ‘fee war’ begins as Franklin Templeton discloses fees
The spot Bitcoin ETF has seen net inflows of $13.85 billion since its launch in January.
The successful launch of the Ether ETF in June along with significant capital inflows suggests that demand for ETH is growing. These factors could push the price of Ether above $4,000 in the next 30 days.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.