Ethereum's native cryptocurrency, Ether (ETH), has surged approximately 67% since the beginning of 2024 and shows potential for further upward movement in June, according to a combination of on-chain analytics, fundamental analysis, and technical indicators.
ETH price is approaching $4K after a falling wedge breakout
Ether was in the breakout phase of its prevalent falling wedge pattern as of June 1.
A falling wedge is a bullish reversal pattern with two trendlines that are descending and convergent. Technical analysis generally states that this pattern resolves when the price breaks above the upper trendline and rises to the maximum height of the wedge.
With an increase in trading volume, ETH's price broke above the wedge's upper trendline on May 20, confirming its trend to achieve the upside target of the pattern by the end of June, at about $4,255, up 12.65% from the current price levels.
The current breakout seems to fit into a bull flag pattern, featuring two downward-sloping trendlines. According to technical analysis principles, bull flags typically see a breakout when the price surpasses the upper trendline and ascends by a distance similar to the previous uptrend. This suggests that ETH could potentially reach $6,000 by the end of June or early July.
The wealthiest whales on Ethereum amass ETH
Ether's wealthiest whale cohort provides more support for its ability to reach $4,000.
The Ether supply owned by entities with a balance of 10 million to 100 million ETH (black), according to on-chain data resource Santiment, has climbed by around 0.5% since May 20, when reports regarding the U.S. The Securities and Exchange Commission (SEC) began to reexamine their denials of spot Ether ETFs.
The accumulation followed a 19.25% surge in the price of ETH relative to USD. Following the SEC's official approval of spot Ether ETFs on May 23, it continued to increase.
On the other hand, during the ETH price increase, the amount of Ether held by entities with a 1 million–10 million ETH balance (brown) dropped significantly, indicating profit-taking. However, concurrently, the Ether reserves across all cryptocurrency exchanges has declined sharply recently.
This indicates a growing hodling mood among investors as the majority of investors are pulling their ETH holdings from cryptocurrency exchanges, which raises the possibility that Ether will continue to rise above $4,000 in June.
June could see SEC approval of spot Ether ETFs
Analysts say there's a "legit possibility" that exchange-traded funds (ETFs) for spot Ether (ETH) in the United States may go live by the end of June after BlackRock updated the Form S-1 for its iShares Ethereum Trust (ETHA) with the SEC.
"This is encouraging. The rest should be in line soon," Eric Balchunas, a Bloomberg ETF analyst, said in a May 29 post on X. Balchunas had already forecast that spot Ether ETFs will receive between 10% and 15% of the flows that spot Bitcoin ETFs had experienced in the past.
June 2024, Cryptoniteuae