Key Highlights:
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The confirmation of a bullish pattern on the daily chart suggests a 34% target profit at around $6,100.
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The percentage of ETH supply on exchanges dropped to 12%, marking a low not seen since 2016.
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This change in ETH supply on exchanges indicates a “supply throttle” and hints at long-term accumulation.
On Thursday, Ether (ETH) reached a multi-year high of $4,792, representing a 45% rise from a low of $3,354 recorded on August 3. Prices have now consolidated under the historical level of $4,867, showing classic bullish continuity patterns.
Could ether prices possibly increase by 34% in the coming days?
Ether’s Bullish Signal Suggests $6,000
ETH achieved a staggering high of over 126% between June 22 and August 14, just shy of $4,800. The recent rally confirmed a bullish breakout at $3,770 on the daily chart, surpassing the resistance typically set by a bull flag.
Bull flags serve as a continuation pattern following a considerable rise, which is often followed by a period of consolidation at elevated price levels.
Ether confirmed a “Textbook Bull Flag” on the daily timeframe, as noted in previous analysis by Trader Mister Crypto.
“Personally, I’m aiming for $6,000.”
As Cointelegraph reported, bulls are keen on pushing ETH past the critical $4,700 resistance level. A successful breakthrough could set the stage for a further movement toward $6,150, reflecting a 34% increase from current prices.
However, it’s worth noting that bullish pennants are said to have a success rate of roughly 54%, which makes them somewhat unreliable.
Some analysts have even made more optimistic predictions, seeing potential demand from institutions through Spot Ethereum ETFs and ETH Treasury companies, suggesting a peak price range of $12,000 to $30,000.
ETH Supply on Exchanges Hits New Lows
The proportion of ETH supply on exchanges fell to its lowest level in nearly a decade, dropping to 12.36% for the first time since July 2016, according to GlassNode data.
This decline indicates a potential price surge ahead, driven by a “supply shock.”
“Only 18.5 million remain on exchanges,” stated popular trader Merlijn The Trader in a recent post.
This trend has been attributed to active buying from ETF issuers and Ethereum Finance Companies, adding:
“If rarity meets demand, the price will not stay flat.”
The data indicates that over 35.7 million ETH remains with strong holders, representing 30% of the total supply. This “supply squeeze” demonstrates a solid commitment from holders, which reduces selling pressure.
This article is not intended as investment advice. All forms of trading and investment involve risks, and readers are encouraged to conduct their own research before making decisions.
