Ether’s (ETH) price is trading 15% below the multi-year high of $4,091, reached on March 21. The second-largest cryptocurrency by market capitalization has been on a downtrend, losing 7.5% of its value over the last seven days.
ETH/USD daily chart. Source: Binance
Despite this performance, analysts believe that Ether still remains one of the altcoins displaying the most upside potential at the moment.
“I’m betting on the ETH ecosystem, and it holds a crucial support level,” MN Capital founder Michael van de Poppe wrote in a June 14 post on the X social media network.
Van de Poppe was referring to the recent drawdown in Ether’s price a few days after the approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC). ETH fell 13% to set a swing low at $3,426 on June 13, and the analyst believes that the uptrend will build up slowly as “the momentum toward listing the Ethereum ETF will start to emerge.”
“The expectation is that the ETF will go live in July.”
Data from market intelligence firm IntoTheBlock shows that ETH sits on relatively robust support just below the $3,400 level. The In/Out of the Money Around Price (IOMAP) chart below reveals that the demand zone between $3,266 and $3,371, where approximately 1.36 million ETH were previously bought by roughly 2.86 million addresses, has the potential to absorb any selling pressure threatening to push the price lower.
Ethereum IOMAP chart. Source: IntoTheBlock
Drawing from the price action on the 12-day timeframe, pseudonymous technical analyst Yodda observed that ETH had bounced off this support level in the recent past to produce a candlestick close above its yearly highs.
Historically, Ether’s return above yearly highs has preceded exponential price growth, as shown in the chart below. Yoddha suggests that if history repeats itself, ETH will embark on a parabolic uptrend with the upside target set around $20,000, making it “one of the most bullish” cryptocurrencies.
“#Ethereum is one of the most bullish altcoins right now. It’s already trading above the previous yearly high.”ETH/BTC 12-day chart. Source. Source:…..