Ethereum has seen a significant upsurge in its price by around 67% in the year 2024. Analysts anticipate a continuation of this positive trend into June, supported by a blend of on-chain, fundamental, and technical signals. As of June 1, Ethereum's daily chart exhibited a notable breakout from a descending wedge pattern.

Interpretation of the Chart

A descending wedge typically signifies a bullish reversal pattern, characterized by two converging trend lines with downward slopes. According to technical analysis insights, when the price surpasses the upper trend line of this pattern, it usually experiences a surge equivalent to the wedge's maximum height. On May 20, Ethereum's price breached this trend line, with increased trading volumes validating the move. This development hints at a potential rally towards approximately $4,255 by the concluding days of June, representing a 12.65% increase from current levels.

Potential Impact of Bull Flag on ETH

Interestingly, Ethereum's breakout appears to align with a bull flag formation, featuring two parallel downward-sloping trend lines. Technical evaluations suggest that a breach above the upper trend line in this scenario could lead to a price escalation matching the height of the prior uptrend, setting a target of $6,000 by late June or early July.

Insights into Investor Activity

• Notable rise in accumulation by major entities holding between 10 million to 100 million Ethereum.
• Diminished Ethereum reserves on exchanges, indicating a possibility of further price appreciation.
• Varied behaviors across different categories of Ethereum holders, with some opting for profit-taking and others focusing on accumulation.

The future outlook for Ethereum seems promising, supported by significant interest from major investors. Data from the blockchain analysis platform Santiment reveals that entities with holdings ranging from 10 million to 100 million Ethereum have augmented their supplies by approximately 0.5% since May 20. This accumulation aligns with the surge in Ethereum's price against the USD and continued following the approval of spot Ethereum ETF funds by the US Securities and Exchange Commission (SEC) on May 23.

Conversely, entities with Ethereum holdings between 1 million to 10 million notably reduced their positions amid the price surge, indicating profit-taking tendencies. However, the overall Ethereum reserves across cryptocurrency exchanges have markedly decreased, indicating a trend where most investors are withdrawing their holdings from exchanges. This shift could be a strong indication of growing accumulation sentiment, potentially propelling Ethereum prices above $4,000 in June.