Ether (ETH) continues to show significant growth, reaching a multi-year high of $4,792. Analysts’ forecasts indicate the potential for further price increases, especially amidst decreasing supply of Ether on cryptocurrency exchanges.
Bull Flag Pattern Indicates Potential Rise
ETH registered a rise of over 126% between June 22 and August 14, reaching a high just below $4,800. The recent price surge confirms a breakout above the resistance level of the bull flag at $3,770 on the daily chart, indicating a bullish breakout.
"The target is $6,000," noted trader Mister Crypto in an analysis.
Drop in ETH Supply on Exchanges
According to Glassnode data, the percentage of ETH on exchanges has dropped to 12.36%, a record low since July 2016. This decrease may signal an upcoming price rally driven by "strong buyer demand" amidst the limited availability of ETH in the market.
"Only 18.5 million Ethereum left on exchanges," said popular trader Merlijn The Trader.
Outlook and Projections for ETH
In line with current trends and analysts’ opinions, increased interest from institutional investors and active ETF purchases could lead to further ETH growth. However, it is noted that the success rate of the bullish flag is only around 54%, making it less reliable in the short term.
Thus, Ether demonstrates impressive results and a potential for further growth. Sustained reductions in exchange supply create conditions for a potential 'price shock,' generating interest among traders and investors.
