Strong technical indicators, ongoing demand for ETFs, and dwindling liquid supply might drive the price of ETH above $4,000.
On June 11, the price of ether reached a four-month high of $2,880 before settling to its current level of $2,550.
A critical resistance level of $2,800 is still present, according to several analysts, and the price must turn this into support in order to initiate a "violent move upward."
In an article published on X on June 16, well-known cryptocurrency expert Daan Crypto Trades stated, "Ethereum price action is compressing just below this big $2.8K level."
A clear closure above this level, according to the trader, would be a "good setup" for a move higher.
ETH appears to be in a strong position to break above $3,000 in the coming days or weeks, according to a number of positive indicators.
ETH is rising as a result of ongoing spot ETF inflows
Persistent institutional demand, demonstrated by large inflows into spot Ethereum exchange-traded funds (ETFs), is one element bolstering Ether's optimistic case.
Before breaking on June 13, spot ether ETFs experienced a 19-day inflow streak. However, they recovered with three days in a row of new inflows from June 16–18, including more than $19 million on Wednesday. According to data from Farside Investors, net inflows into these investment products have totaled $861.3 million during the past two weeks.
Despite early market fear from the Israel-Iran war, these inflows are said to be the largest since January 2025 and show growing confidence among traditional finance companies.
Accumulation addresses and spiked ETH reach all-time highs
The total locked amount reached a new all-time high of over 35 million ETH after ether stakes grew by more than 500,000 ETH between June 1 and June 15.
Increased confidence and a persistent decline in liquid supply are indicated by this growth. Because of this shortage, prices may rise if demand remains the same or increases.
CryptoQuant's analyst OnChainSchool noted in a QuickTake on June 16 that Ether's accumulation addresses—holders who have never sold—have also increased to an all-time high, currently holding 22.8 million ETH, or almost $58 billion at current exchange rates.
Strong investor confidence and little selling pressure are indicated by this, which frequently precedes stock rallies.
The price of ETH must break beyond the 200-day SMA trendline
The price of ETH is trapped between two crucial levels, according to data from Cointelegraph Markets Pro and TradingView: the 50-day simple moving average (SMA) at $2,450 serves as support, while the 200-day SMA at $2,600 acts as resistance.
To guarantee a long-term recovery toward $3,000 and higher, ETH bulls had to retake the 200-day SMA.
The price of Bitcoin last surged 40%, from $3,130 on November 9, 2024, to its multi-year high of $4,100 on December 15, 2024, when it broke above this trendline.
However, as the chart below illustrates, the bull flag pattern suggests a possible breakout toward $3,900.
According to reports, Ether might rise 51% to $4,200 after breaking out of a cup-and-handle chart pattern.
