Key takeaways:
Ether’s bull flag confirmation on the daily chart targets 34% gains to $6,100.
The percent of ETH supply held on exchanges has dropped to 12% for the first time since 2016.
Depleting ETH supply on exchanges points to a “supply squeeze” and long-term accumulation.
Ether ( ETH ) price registered a multi-year high of $4,792 on Thursday after a 45% rise from its Aug. 3 low at $3,354. The price is now consolidating below its $4,867 all-time high after validating a classic bullish continuation pattern.
Can Ether’s price rise 34% in the next few days?
Ether’s “bull flag” hints at $6,000
ETH rallied more than 126% between June 22 and Aug. 14 to reach a multi-year high just below $4,800 . The latest rally saw the price breach the resistance provided by the upper boundary of a bull flag at $3,770 on the daily chart, confirming a bullish breakout.
Related: BlackRock Bitcoin, Ether ETFs buy $1B as BTC price mostly fills CME gap
A bull flag is a continuation pattern that occurs after a significant rise, followed by a consolidation period at the higher price end of the range.
Ether has confirmed a ”textbook bull flag” in the daily time frame, said trader Mister Crypto in an earlier analysis on X.
“The target is $6,000.”
As Cointelegraph reported , bulls are now focused on pushing ETH above a key resistance at $4,700. Such a move could potentially lead to the next leg up for Ether, measured at $6,150 or 34% from its current price level.
However, it is important to note that the success rate of a bullish pennant is only around 54%, which makes it one of the least reliable patterns.
More ambitious projections have been made by other analysts, citing increasing institutional demand through spot Ethereum ETFs and ETH treasury companies , putting ETH’s top between $12,000 and $30,000 .
Percentage of ETH on exchanges drops to a new low
ETH percent supply on exchanges has dropped to a nine-year low, falling to 12.36% for the first time since July 2016, Glassnode data shows.
Diminishing Ether supply on exchanges may signal an incoming price rally fueled by a “supply shock,” which occurs when strong buyer demand meets decreasing available ETH.
“Only 18.5M Ethereum left on exchanges,” said popular trader Merlijn The Trader in a Friday post on X.
The trader attributed this to aggressive buying by ETF issuers and Ethereum treasury companies, adding:
“When scarcity meets demand, price doesn’t go sideways. Supply squeeze incoming.”
Coupled with over 35.7 million ETH staked (30% of supply), according to data from UltraSound Money, this “supply squeeze” signals strong holder conviction and reduced sell-side pressure.
