3 signs that Ethereum price will finally break $4K in June

Anticipation of potential Ether ETF approvals in June is pivotal in driving ETH’s price above $4,000, with whales accumulating and rising holding sentiment furthering the bullish outlook.

Ethereum’s native token, Ether (ETH), has rallied by circa 67% so far in 2024 and may continue its upside moves in June, per a mix of on-chain, fundamental, and technical indicators.

Falling wedge breakout has ETH price eyeing $4K

As of June 1, Ether had entered the breakout stage of its prevailing falling wedge pattern.

A falling wedge is a bullish reversal pattern characterized by two descending, converging trendlines. As a rule of technical analysis, this pattern resolves when the price breaks above the upper trendline and rises by as much as the wedge’s maximum height.

On May 20, ETH’s price broken above the wedge’s upper trendline with a rise in trading volumes, confirming its bias to reach the pattern’s upside target at around $4,255 by June’s end, up 12.65% from the current price levels.

Interestingly, the ongoing breakout further appears to be part of a bull flag pattern, characterized by two parallel, downward-sloping trendlines.

As a rule of technical analysis, bull flags resolve when the price breaks above their upper trendline and rises by as much as the previous uptrend’s height. This puts ETH en route $6,000 by June’s end or early July. 

Ethereum’s richest whales accumulates ETH

Ether’s potential to reach $4,000 receive further boost from its richest whale cohort.

According to on-chain data resource Santiment, the Ether supply held by entities with a balance of 10 million—100 million ETH (black) has increased by circa 0.5% since May 20, when rumors about the U.S. Securities and Exchange Commission’s (SEC) reconsideration toward spot Ether ETF denials started.

The accumulation coincided with a 19.25% ETH/USD price boom. It kept growing after spot Ether ETFs received official approval from the SEC on May 23.

Conversely, the Ether supply held by entities with a 1 million—10 million ETH balance (brown) declined sharply during the ETH’s price rally, suggesting profit-taking. But, at the same time, the Ether reserves across all the crypto exchanges has declined sharply recently.

This shows that most investors are withdrawing their ETH holdings from crypto exchanges—a sign of increasing hodling sentiment, which increases Ether’s potential to continue rallying in June above $4,000.

SEC may approve spot Ether ETFs in June

According to analysts, there is a “legit possibility” that U.S. spot Ether (ETH) exchange-traded funds (ETFs) could launch by late June following BlackRock’s decision to update the Form S-1 for its iShares Ethereum Trust (ETHA) with the SEC. 

“This is a good sign. We’ll probably see the rest roll in soon,” Bloomberg ETF analyst Eric Balchunas commented in a May 29 post on X. Earlier, Balchunas had predicted spot Ether ETFs to take in 10-15% of the flows that spot Bitcoin ETFs have seen in the earlier days after their launch.

Related: Spot Ethereum ETF ‘fee war’ begins as Franklin Templeton discloses fees

Spot Bitcoin ETFs have seen a net inflow of $13.85 billion since their launch in January.

The successful launch of Ether ETFs in June, accompanied by significant capital inflows, suggests there is rising demand for ETH. These factors can push Ether’s price above $4,000 over the next 30 days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.