Ether ETH, the native token of Ethereum has increased by almost 67% so far in 2024, and a combination of technical, fundamental, and on-chain indications suggest that it might keep rising in June. 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.
Curiously, the current breakout seems to be a component of a bull flag pattern, which is distinguished by two trendlines that are parallel and slope downward.Technical analysis generally states that bull flags cease when the price breaches the upper trendline and rises to the height of the preceding uptrend. By the end of June or the beginning of July, ETH might reach $6,000.
Ether’s wealthiest whale cohort provides more support for its ability to reach $4,000. The Ether supply held 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 began to circulate regarding the U.S. Securities and Exchange Commission’s (SEC) reconsideration toward spot Ether ETF denials.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, at the same time, all cryptocurrency exchanges’ Ether reserves have recently dropped precipitously.
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.