Ether: Poised for Parabolic Rise Following Recent Downtrend, Predict Analysts
Summary:
Despite recent losses, the second-largest cryptocurrency, Ether (ETH) remains one of the altcoins with the most growth potential, according to market analysts. The decline in its value, which occurred following the U.S SEC's approval of Ethereum ETFs, is seen as a temporary setback, with expectations of a resurgence of the price in the near future. Market expectations are that the ETF could go live by July. Ether's robust support just under the $3,400 mark and increased investor accumulation, especially after large withdrawals from centralized exchanges, are seen as positive signs. Strong demand-side pressure due to whale activity and reduced supply on exchanges is set to push Ether’s price above $4,000, initiating a parabolic upward trend.
Currently, Ether (ETH) trades at a price that's 15% less than its highest peak in years of $4,091, witnessed on March 21st. During the past week, the value of the second-most valuable cryptocurrency has been decreasing, recording a 7.5 % decrease. Despite this, market experts still consider Ether as one the altcoins showing exceptional growth potential right now.
"I've put my bets on the ETH system, maintaining an all-important support level," notes Michael van de Poppe, founder of MN Capital, in a post shared on X social media platform on June 14th. He was discussing the recent price plunge of the Ether coin, which transpired after the U.S. SEC (Securities and Exchange Commission) gave the green light to spot Ethereum ETFs. The value of ETH dipped 13%, reaching a low point of $3,426 on June 13. However, Van de Poppe thinks the price will gradually ascend as the momentum for listing the Ethereum ETF builds up. He predicts that the ETF could be active by July.
According to data from IntoTheBlock, a market intelligence company, ETH has a solid support just under the $3,400 mark. The In/Out of the Money Around Price (IOMAP) diagram shows a large demand, stretching from $3,266 to $3,371. This range, where nearly 1.36 million ETH was previously purchased by around 2.86 million addresses, displays the potential to resist any selling pressure that could further pull the price down.
Yodda, an anonymous technical analyst, noted from a 12-day timeframe that ETH has rebounded from this support level in recent times, creating a closing candlestick above its yearly peaks. Historically, once Ether reaches above its annual high, it precedes a major boost in price. Using history as a guide, Yodda suggests that ETH might enter a parabolic upward trend, with the upper limit set near $20,000, making it a champion among cryptocurrencies.
Backing Ether's bullish wave is the increased investor accumulation seen through large withdrawals from centralized exchanges. This potentially stems from optimistic events on the horizon, such as the anticipated debut of the spot Ether ETF market in coming months.
CryptoQuant data shows approximately 460,000 ETH, worth about $1.58 billion currently, were pulled from central exchanges between June 9 and 11. This is the fifth time in 2024 that the exchanges have seen a single-day withdrawal of over 400,000 ETH, a sign of bullish motion for the smart contract token.
Daan Crypto Trades, a crypto analyst, reported a significant net withdrawal of ETH from Coinbase, a U.S. cryptocurrency exchange on June 11. That day, the altcoin witnessed the biggest correction since April 30. This might hint towards a number of things, the analyst suggested in a June 13 post on X stating, "Despite the reason, a rise in ETH net outflows is always good news."
Increased whale activity may also be was the reason for this, Ali Martinez noted on Tuesday. Whales have been using recent dips to acquire more Ether. This implies that the demand pressure stemming from whales amassing Ether and the reduced supply on exchanges will generate a supply shortage that in return drives Ether's price above $4,000, kickstarting a parabolic upward trend.
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Published At
6/14/2024 9:03:49 PM
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