Ethereum's Ether (ETH) Poised for Promising Gains with Predictions of Hitting $4,000 in June
Summary:
The native cryptocurrency of Ethereum, Ether (ETH), has experienced a rise of nearly 67% in 2024 and is predicted to continue accruing gains in June. Currently in the breakout phase of a bullish reversal pattern, the coin is on a trajectory to reach a range around $4,255 by the end of June. There's also a significant chance that this could push ETH towards the $6,000 mark by July. These projections are backed by ETH's largest investors and the growing holding sentiment in the cryptocurrency market. The possible launch of U.S. spot Ether exchange-traded funds (ETFs) by late June could further boost ETH's value over $4,000 in the next 30 days.
The native cryptocurrency of the Ethereum network, Ether (ETH), has experienced a surge of nearly 67% in 2024 till now. Predictions for continued gains in June come from a combination of on-chain, fundamental, and technical factors. Ether currently is in the breakout phase of a descending trading pattern known as a falling wedge. The latter is recognized as a bullish reversal pattern distinguished by a pair of downward slanting, merging trend lines. As per technical analysis, a price surge equal to the maximum height of the wedge is expected when the price thrusts past the upper trend line.
ETH showed a breakout from the upper trend line of the wedge on May 20, evident from the increased trading volumes, pointing towards an estimated target price of approximately $4,255 by June's end, a rise of 12.65% from the current price levels.
Interestingly, this breakout seems to form part of another pattern, a bull flag, identified by a pair of downward-slanting, parallel trendlines. In line with technical analysis rules, a jump as high as the previous uptrend is anticipated when the price crosses past their upper trendline, positioning ETH to potentially reach $6,000 by the end of June or beginning of July.
Ether's journey towards $4,000 is further backed by its most significant whale investors. Data from on-chain resource Santiment reveals that entities holding between 10 million to 100 million ETH saw a growth of approximately 0.5% since May 20, when rumors about the U.S. Securities and Exchange Commission (SEC) revisiting the denial of spot Ether ETFs began.
This accumulation coincided with a surge of 19.25% in the ETH/USD price. Even after the SEC officially approved spot Ether ETFs on May 23, the uptick continued. Conversely, entities with holdings between 1 million to 10 million ETH noted a sharp decline during Ether's ramp up, indicating profit realization. However, overall crypto exchange reserves of Ether have recently seen a marked decrease, a sign of growing holding sentiment, predicting continued rally in Ether's price above $4,000 in June.
Analysts suggest there is a "bona fide chance" for the introduction of U.S. spot Ether exchange-traded funds (ETFs) by late June, following BlackRock's update to Form S-1 for its iShares Ethereum Trust (ETHA) with the SEC. Spot Ether ETF getting 10-15% of the transactions that spot Bitcoin ETF saw in the days post-launch was a possibility hinted by Eric Balchunas, Bloomberg ETF analyst. Spot Bitcoin ETFs have reported a net influx of $13.85 billion since their January roll-out.
The anticipated successful launch of Ether ETFs coupled with considerable capital inflows in June point to the growing demand for ETH. These developments might push Ether's value beyond $4,000 in the next 30 days. This report doesn’t offer any investment advice. Every investment and trade pose a risk, and readers must do their thorough research before making any decision.
Published At
6/1/2024 3:21:48 PM
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