Ethereum is the ‘most bullish altcoin’ as ETH returns $3.5k.
The price of Ether fell 15% below the multi-year high of $4,091, reached on March 21. The second largest cryptocurrency by market capitalization has been on a downward trend, losing 7.5% of its value in the last seven days.
Despite this performance, analysts believe that Ether (ETH) is currently one of the most promising altcoins.
Michael van de Pop, founder of MN Capital, posted on the X social media network on June 14, “I play on the ETH ecosystem, and it holds a critical level of support.”
Van de Pop is referring to the recent fall in ether prices just days after the US Securities and Exchange Commission (SEC) approved spot ether exchange-traded funds (ETFs). ETH fell by 13% to set a swing low of $3,426 on June 13 and the analyst believes that “motivation to list the Ethereum ETF is starting to emerge.”
“Expected ETF to go live in July.”
Data from market intelligence firm IntoTheBlock shows that ETH has relatively strong support below $3,400. The Price Around Money In/Out (IOMAP) chart below shows that the demand zone between $3,266 and $3,371, where approximately 1.36 million ETH has already been bought by 2.86 million addresses, threatens to push selling pressure. low cost.
Based on the price action on the 12-day timeframe, anonymous technical analyst Yodada has observed that ETH has broken out of this support level in the near term and set up a candlestick close above its annual high.
As shown in the chart below, Ether's comeback was ahead of its annual peak price growth. Yodada suggests that if history repeats itself, ETH will begin a parabolic advance near the $20,000 upside target, making it one of the “most bullish” cryptocurrencies.
“Ethereum is one of the most bullish altcoins right now. It has already surpassed its previous annual peak trading volume.
Ether's bullishness is supported by the massive influx of investment into centralized exchanges. This hoarding activity could be due to worrisome events on the horizon, such as the expected debut of the Space Ether ETF market in the coming months.
Data from CryptoQuant shows that 460,000 ETH, valued at $1.58 billion at current prices, was withdrawn from centralized exchanges between June 9 and June 11. This marks the fifth time in 2024. Marking high bullish momentum for smart contract token.
A similar observation was made by crypto analyst Daan CryptoTrades on June 11, when ETH saw a significant net outflow from US-based crypto exchange Coinbase, the day the altcoin saw its biggest correction since April 30.
This can be explained by “different things”, the analyst posted on June 13 on X, “Regardless, the net flow has been increasing for ETH, which is always good to see.”
It could be due to increased whale activity, as Ali Martinez observed on Tuesday. Whales used recent dips to store large amounts of ether.
This suggests that increased demand-side pressure from rising whale stocks and reduced exchange supply will create a supply shortage and ultimately push Ether's price above $4,000 into a parabolic rise.
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