3 Indicators Pointing to Ethereum Breaking $4K in June

Ethereum price shows strong signs of surpassing $4,000 in June, driven by technical patterns, whale accumulation, and potential SEC approval for spot Ether ETF.

Ethereum native token, Ether (ETH), has surged by approximately 67% in 2024 and looks poised for further gains in June. A combination of on-chain data, fundamental factors, and technical analysis supports this bullish outlook.

Technical Breakout Targets $4K

As of June 1, Ether entered the breakout phase of its falling wedge pattern. This bullish reversal pattern, defined by descending, converging trendlines, typically resolves with a price increase equal to the wedge’s maximum height. On May 20, ETH broke above the wedge’s upper trendline with increased trading volumes, targeting a rise to around $4,255 by the end of June, a 12.65% increase from current levels.

Moreover, this breakout appears to be part of a larger bull flag pattern. According to technical analysis, bull flags predict a price rise equal to the previous uptrend’s height upon breaking their upper trendline. This scenario suggests ETH could reach $6,000 by late June or early July.

Whale Accumulation Supports Price Surge

Ether’s prospects of hitting $4,000 are further strengthened by significant whale accumulation. On-chain data from Santiment reveals that entities holding between 10 million and 100 million ETH have increased their holdings by approximately 0.5% since May 20. This period coincides with rumors and eventual confirmation of the U.S. Securities and Exchange Commission (SEC) reconsidering its stance on spot Ether ETFs, driving a 19.25% ETH price increase.

Conversely, entities with 1 million to 10 million ETH have reduced their holdings, suggesting profit-taking. However, overall Ether reserves across all crypto exchanges have declined sharply, indicating a growing “hodling” sentiment among investors. This behavior typically suggests confidence in further price appreciation, supporting ETH potential rally above $4,000 in June.

Potential SEC Approval for Spot Ether ETF

Analysts foresee a “legit possibility” of U.S. spot Ether ETFs launching by late June, following BlackRock updated Form S-1 for its iShares Ethereum Trust (ETHA) with the SEC. Bloomberg ETF analyst Eric Balchunas highlighted this development as a positive sign, expecting other filings to follow soon. Earlier, Balchunas projected spot Ether ETFs to capture 10-15% of the inflows seen by spot Bitcoin ETFs, which have amassed $13.85 billion since January.

The anticipated approval and subsequent capital inflows into Ether ETFs suggest rising demand for ETH. These factors could propel Ether price above $4,000 within the next 30 days, reinforcing the bullish outlook for June.

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