Ethereum (ETH) has experienced a 7.5% decline in value over the past week, but remains a promising altcoin according to analysts. The recent approval of spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) and significant accumulation by whales have contributed to a positive outlook for the cryptocurrency.
Crucial support and accumulation by ETH whales
The current price of ether is hovering around $3,600, which is 15% below the peak of $4,091 reached on March 21. Despite this decline, ETH remains above a key zone of support, where large investors, known as whales, continue to add to their positions. Michaël van de Poppe, founder of MN Capital, believes that the upward trend will continue with the upcoming launch of the Ethereum ETFs, which is expected to go live in July.
Analysts note that ETH has repeatedly risen from this support level, often leading to exponential price increases in the past. Analyst Yoddha predicts that if this trend repeats, ETH could rise to around $20,000, making it one of the most bullish cryptocurrencies.
Future bullish momentum from ETF launch
The potential launch of ETFs along with significant outflows of ETH from centralized exchanges points to increasing investor interest and declining supply. According to CryptoQuant, approximately 460,000 ETH, worth $1.58 billion, were removed from exchanges between June 9 and 11. This is the fifth time in 2024 that outflows exceeded 400,000 ETH in a single day.
Daan Crypto Trades, a crypto analyst, noted a “massive net outflow” of ETH at US exchange Coinbase on June 11, the day the altcoin saw its biggest correction since April 30. He stated that these outflows are “always good to see,” indicating bullish momentum for the second-largest cryptocurrency.
Although Ethereum has recently suffered a price decline, the bullish potential remains strong due to whale accumulation and the upcoming launch of the spot ether ETFs. The combination of these factors points to a positive outlook for the price of ether in the near future. Investors therefore remain optimistic about the further development of ETH.
