Key Takeaways
- Recent analysis suggests a bull flag in ether could target profits around $6,100, indicating a potential 34% gain.
- The amount of ETH held on exchanges has dipped to 12%, marking a low not seen since 2016.
- This reduction in ETH on exchanges suggests a “supply throttle” effect, hinting at long-term accumulation trends.
On Thursday, ether prices peaked at $4,792, rising 45% to $3,354 since August 3. Current price analysis places them below $4,867 amid classic bullish patterns.
Will ether really climb 34% in the coming days?
The Bullish Sign for Ether: Aiming for $6,000
ETH experienced a multi-year surge, gaining over 126% from late June to mid-August, nearing $4,800. The recent upswing broke a bullish pattern on the daily chart, pushing through resistance levels.
Bull flags often occur after significant price increases, followed by a consolidation phase.
Trader Mister Crypto mentioned that ether displayed a textbook bull flag in its daily timeframe. “My target is $6,000,” he stated.
As noted, the current market is bullish, with traders eager to push ETH past the critical $4,700 mark. A successful breakout could elevate ether to around $6,150—a 34% increase from current levels.
However, keep in mind that bullish pennants tend to have a success rate of about 54%, making them somewhat unreliable.
Some analysts have more ambitious expectations, citing institutional interest via Spot Ethereum ETFs and ETH Treasury companies, projecting prices could reach between $12,000 and $30,000.
Exchange ETH Supply Hits All-Time Lows
Data from GlassNode reveals that the percentage of ETH held on exchanges has dropped to 12.36%, the lowest in a decade—last seen in July 2016.
A significant reduction in ETH on exchanges might signal rising prices, potentially prompted by a “supply shock.”
Popular trader Merlijn highlighted that “only 18.5 million Ethereum are left on exchanges.” Market watchers attribute this to significant buying activities from ETF issuers and Ethereum financial firms.
“When rarity meets demand, it’s unlikely the price will stay flat,” he added.
Data from Ultrasound Gold indicates that, alongside 35.7 million esthetic tacks constituting 30% of the total supply, this “supply squeeze” reflects strong confidence among holders and reduced selling pressure.
This article is for informational purposes and should not be considered investment advice. Every trading decision carries risks, so it’s vital to conduct thorough research before making investments.
