- Ethereum has experienced a substantial price increase of about 67% in 2024.
- Experts believe this positive trend might persist through June, driven by a mix of on-chain metrics, fundamental factors, and technical analysis.
- The daily chart for Ethereum on June 1 shows a notable breakout from a descending wedge pattern.
Ethereum is on a bullish trajectory, gaining 67% in 2024, with potential for further growth in June based on key technical and fundamental indicators.
Analyzing Ethereum’s Technical Chart
The descending wedge pattern, identified on Ethereum’s chart, is known for signaling bullish reversals. Characterized by narrowing trend lines that converge downwards, a breakout above the upper line often predicts a price surge matching the pattern’s height. On May 20, Ethereum broke above this line, supported by strong trading volumes, suggesting a possible increase to around $4,255 by the end of June, a projected gain of 12.65% from its current valuation.
Ethereum and the Bull Flag Pattern
Similarly, Ethereum’s recent breakout appears to form part of a bull flag pattern, distinguished by two parallel downward-sloping lines. Technical analysis suggests a rise by the length of the prior uptrend once the price surpasses the upper trend line. This positions Ethereum for a potential target of $6,000 by the end of June or early July.
Insights from Investor Activity
- Large entities holding between 10 million and 100 million Ethereum have increased their accumulations.
- There’s been a significant reduction in Ethereum supplies on exchanges, hinting at potential for further price appreciation.
- Different behaviors among Ethereum holders, with larger holders accumulating and others taking profits.
Investor interest in Ethereum remains robust, highlighted by substantial buying activity from large investors. Blockchain data from Santiment reveals that entities with holdings ranging between 10 million to 100 million Ethereum boosted their stocks by around 0.5% since May 20. This accumulation corresponds with the ETH/USD pair price rise and persisted following the U.S. SEC’s approval of spot Ethereum ETFs on May 23.
In contrast, entities holding between 1 million to 10 million Ethereum have reduced their positions during the price rally, indicating profit-taking strategies. However, the overall Ethereum reserves on cryptocurrency exchanges have dropped significantly, suggesting most investors are transferring holdings off exchanges. This trend likely signals enhanced accumulation sentiment, which could propel Ethereum prices above $4,000 in June.
Conclusion
Summing up, Ethereum’s price increase in 2024 stands as a testament to its growing investor confidence and robust technical setup. With large holders increasing their stakes and a decreasing Ethereum supply on exchanges, the positive trend seems likely to persist. While some investors have taken profits, overall market sentiment and technical indicators suggest a potential bullish outlook for Ethereum, possibly driving its value beyond the $4,000 mark in the coming month.
