Ether’s price has taken a hit, plummeting 15% below its multi-year high of $4,091, reached on March 21. The second-largest cryptocurrency by market capitalization has lost 7.5% of its value over the last seven days. Despite this decline, analysts believe that Ether still holds significant upside potential.
MN Capital founder Michael van de Poppe believes that Ether’s recent drawdown is a buying opportunity, citing the approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) as a catalyst for growth. Van de Poppe expects the ETF to go live in July, which could propel Ether’s price higher.
Data from IntoTheBlock shows that Ether is supported by a robust demand zone between $3,266 and $3,371, where approximately 1.36 million ETH were previously bought by roughly 2.86 million addresses. This demand zone has the potential to absorb any selling pressure threatening to push the price lower.
Technical analyst Yodda notes that Ether has bounced off this support level in the recent past, producing a candlestick close above its yearly highs. Historically, Ether’s return above yearly highs has preceded exponential price growth, with a potential upside target of $20,000.
Ethereum’s bullishness is also supported by increased investor accumulation, evidenced by massive outflows from centralized exchanges. Data from CryptoQuant reveals that about 460,000 ETH valued at $1.58 billion was withdrawn from exchanges between June 9 and June 11. This marks the fifth time in 2024 that the exchanges have seen a single-day outflow of more than 400,000 ETH, signifying a highly bullish momentum for the smart contract token.
Similar observations were made by crypto analyst Daan Crypto Trades, who observed a “massive net outflow” of ETH from the US-based crypto exchange Coinbase on June 11. This could be due to increased whale activity, as Ali Martinez observed on Tuesday. Whales have taken advantage of recent dips to accumulate more Ether.
This suggests that high demand-side pressure arising from increased whale accumulation and reduced supply on exchanges will create a supply deficit that eventually pushes Ether’s price above $4,000 and into a parabolic uptrend.
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Source: Cointelegraph
