Ethereum Bulls Target $5K Rally in June 2024, Driven by ETF Approvals and Shrinking Supply

• Ethereum gained 4% over the weekend to trade above $3,800 but remains stuck below this level, with ETH bulls targeting a rally to $5,000 in June, driven by ETF demand and the consequent shrink in supply.
• Ether bulls have been withdrawing ETH from exchanges en masse for two weeks now in anticipation of a price boost from the looming launch of Ethereum ETFs.

Ethereum started the month on a high, gaining close to 4% over the weekend to peak at $3,840. The momentum has reduced, and it now trades below this level as the broader crypto market struggles to overcome the weekend lull and rediscover the bullish rally from two weeks ago.

ETH trades at $3,778, shedding 1.45% in the past day despite a resurgence in the trading volume to $13 billion after the weekend dip.

Analysts point out that Ether is forming a bull pennant and that the price action today and tomorrow could determine which direction the crypto will head in over the next few weeks. A bull pennant is a pattern formed after a rapid rise with two converging trendlines, as shown below.

If Ethereum breaks out past $3,900 and maintains above that level over the next two days, it’s likely to confirm a breakout on the upper trendline of this pennant and will likely use it as support to hit higher highs over the next few weeks.

However, if it fails to breach the upper trendline (marked by a dip below $3,700), it’s most likely to dip further in the coming weeks as bears take over the market.

Ethereum ETF to Boost ETH to $5,000

Despite the lack of volatility, Ethereum bulls are betting big on the largest altcoin. On-chain data shows that they have been withdrawing their ETH from exchanges for several days now, possibly in anticipation of a major price rally.

Since May 23, Ethereum bulls have withdrawn 797,000 ETH, worth just over $3 billion, from centralized exchanges like Binance and Coinbase to their wallets. Exchange outflow signals bullish sentiment and alleviates selling pressure.

Glasssnode data shows that the supply of ETH held on exchanges is currently at 10.6%, the lowest ever in the altcoin’s history.

A key factor in the current market dynamics is the looming launch of ETH ETFs. As Crypto News Flash reported last month, the SEC approved these ETFs, but it’s not yet clear when these products will have the green light to hit the market. This speculation is leading investors to scoop up ETH to take advantage of the expected price surge once the ETFs start trading.

Experts, including Bloomberg’s ETF expert Eric Balchunas, continue to predict that the launch could be later this month. The latest is Jamie Sly, the communications manager at CCData, a crypto data firm, who told one news outlet:

The general market consensus is that these ETFs will be launched sooner rather than later.