3 Signs Ethereum Will Break $4K in June

Ether, the native cryptocurrency of the Ethereum network, has seen an impressive uptick of approximately 67% so far in 2024. Multiple indicators—ranging from on-chain data to fundamental and technical analyses—suggest that this upward momentum could persist through June.

One technical pattern to note is the falling wedge, which Ether appears to have broken out from as of June 1. In technical analysis, a falling wedge is a bullish signal often characterized by two converging downward trendlines. The pattern typically resolves when the price breaks above the upper trendline and rises by an amount equivalent to the wedge’s maximum height. On May 20, Ether’s price moved above the wedge’s upper boundary, supported by increased trading volumes, which points to a potential price target of around $4,255 by the end of June, a projected increase of about 12.65% from current levels.

This breakout aligns with what is known as a bull flag pattern. This pattern consists of two downward-sloping, parallel trendlines and generally signals an impending upward move when the price breaks above the upper trendline. The bull flag indicates that Ether could be on course to reach $6,000 by late June or early July.

Adding to the bullish sentiment, Ethereum’s wealthiest investors have been accumulating Ether. Data from on-chain analytics firm Santiment highlights that entities holding between 10 million and 100 million ETH have increased their holdings by approximately 0.5% since May 20. This increase in holdings happened after rumors surfaced regarding the U.S. Securities and Exchange Commission (SEC) considering approvals for spot Ether exchange-traded funds (ETFs). This accumulation period coincided with a 19.25% surge in ETH/USD price.

Interestingly, the accumulation has grown even more robust following the SEC’s official approval of spot Ether ETFs on May 23. Conversely, entities holding between 1 million and 10 million ETH have reduced their holdings, possibly indicating profit-taking behavior. Ether reserves across all crypto exchanges have seen a sharp decline, suggesting investors are moving their ETH off exchanges—a strong signal of increasing “hodling” sentiment, which could further propel Ether’s price above $4,000.

Analysts also see a potential catalyst for ETH’s ongoing rally in the approval of spot Ether ETFs by the SEC. This approval could come as early as late June, particularly with BlackRock updating its Form S-1 for the iShares Ethereum Trust with the SEC. Bloomberg ETF analyst Eric Balchunas noted that the regulatory progress is a positive development and suggested that other approvals might follow soon.

This optimism is bolstered by Balchunas’s earlier speculations that spot Ether ETFs could attract 10-15% of the flows that spot Bitcoin ETFs have seen in their early days. Given that spot Bitcoin ETFs have raked in a net inflow of $13.85 billion since January, a similar demand for Ether ETFs could significantly drive up ETH prices.

If these predictions hold true, the combined effect of technical breakouts, whale accumulation, and ETF approvals could foster significant capital inflows into Ether. Consequently, these factors may well push Ether’s price above $4,000 within the next 30 days.

A confluence of technical patterns, substantial whale accumulation, reduced exchange reserves, and the potential approval of spot Ether ETFs by the SEC provide ample grounds for optimism. All these elements together present a compelling case for Ether’s continued rally through June and potentially beyond.