According to Cointelegraph, Ether (ETH) recently reached its highest level in several years at $4,792 after a significant increase of 45% from its low of $3,354 on August 3. The cryptocurrency is currently consolidating below its all-time high of $4,867, after confirming a classic bullish continuation pattern known as a bullish flag. This pattern suggests the potential for a price increase of 34%, which could lead to a reach of $6,100 in the coming days.
The bullish flag pattern, which emerged after Ethereum surged over 126% between June 22 and August 14, indicates the continuation of the upward trend after a period of consolidation. The recent surge saw Ether break through resistance at $3,770, confirming a bullish breakout. While the bullish flag indicates a target of $6,000, the success rate of such patterns is around 54%, making it relatively unreliable. However, bullish sentiment remains strong as traders focus on pushing Ether above the key resistance level of $4,700, which could lead to further gains.
In addition to technical indicators, the percentage of Ether supply held on exchanges has dropped to its lowest level in nine years at 12.36%, according to Glassnode data. This decline in supply held on exchanges suggests the possibility of a 'supply shock', where strong demand from buyers meets dwindling availability of Ether. Noted trader Merlin the Trader pointed out that there are only 18.5 million Ether remaining on exchanges, attributing this to aggressive buying by ETF issuers and Ether treasury companies. The low supply on exchanges and more than 35.7 million Ether invested, representing 30% of total supply, indicates strong belief from coin holders and reduced selling pressure.
While some analysts have made ambitious price predictions for Ether, pointing to increasing demand from institutions through Ether ETFs and treasury companies, it is essential that investors conduct their own research and consider the inherent risks associated with trading cryptocurrencies. This article does not provide investment advice or recommendations, and readers should be aware of the volatility and potential risks associated with investments in cryptocurrencies.#etf #Ethereum