Ethereum price had a strong performance in May as it finally made a bullish breakout, and the odds of it falling to $1,000 fell. ETH jumped to a high of $2,783, up by 100% from its lowest point this year. This article provides an ETH price prediction for June and what to expect.
Ethereum price prediction
The daily chart shows that the ETH price crashed to a low of $1,385 in April and then quickly rebounded to a high of $2,783 on May 19. Its highest point was along the 50% Fibonacci Retracement level.
Ethereum price has formed a bullish flag pattern, comprising a vertical line and a rectangle pattern. This is one of the most bullish patterns in technical analysis.
ETH price has jumped above the 50-day and 200-day moving averages, a sign that it is about to form a golden cross pattern.
Therefore, the most likely scenario is where the coin finally makes a strong bullish breakout as long as it remains above the 200-day moving average. If this happens, the next point to watch will be the psychological point at $3,000, which is about 20% above the current level.
A break above $3,000 will be important because it will boost the chance of it rising to $4,000, the highest point in November last year. A move below the support at $2,300 will invalidate the bullish Ethereum price forecast.
Top catalysts for the ETH price
Ethereum price has numerous catalysts that may push its price higher in June. First, as we wrote on Sunday, Bitcoin price has a strong bullish outlook later this month, helped by its strong supply and demand dynamics. Its ETF demand is rising while supply on exchanges continues to fall.
A strong Bitcoin price rebound will likely push other cryptocurrencies higher during the month. That’s because, historically, the two coins have a close correlation with each other.
Second, ETH is seeing strong demand from Wall Street investors. The spot ETH ETFs have had strong inflows in the past few weeks. It had inflows in the last three consecutive weeks, bringing the cumulative total to $3.05 billion.
Spot ETH ETFs added $285 million last week, up from $248 million and $41.5 million in the last two weeks. They also had inflows for two consecutive months.
Third, data shows that the supply of Ethereum held in exchanges continued to fall, a sign that holders are not selling as much. There are now 7.6 million coins, down from 10.75 million in January. Falling exchange volume is a bullish sign that investors are no longer selling as they did before.
Further, there are signs that whales are still accumulating Ethereum, possibly because they believe it is a bargain. The supply held by whales has jumped to 103.6 million, up from 102 million in February.
Ethereum has more bullish fundamentals. For example, RWA data shows that it is the biggest chain in the real-world-asset tokenization industry, which has over $23 billion in on-chain assets. Ethereum has a 59% market share in this industry, and is followed by ZKsync Era, Stellar, Aptos, Solana, and Polygon.
Ethereum is also the biggest player in decentralized finance (DeFi) with over $131 billion in assets and $124 billion in stablecoins. Its $131 billion TVL gives it a market share to 61%, while its stablecoin assets account for about 50% of all assets. Therefore, these fundamentals will point to more gains.
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