Ethereum News Today: Ether Bull Flag Validates 34% Rally Potential as Exchange Supply Hits 12.36%

Ether’s price has formed a confirmed bull flag pattern on the daily chart, with traders and analysts suggesting a potential 34% move toward $6,100 [1]. This pattern, a classic continuation formation following a significant price rise, emerged after ETH surged over 126% between June 22 and August 14, reaching a multi-year high near $4,800. The consolidation phase has now concluded with a breakout above the pattern’s upper boundary at $3,770, validating the bullish signal [1].

The current ETH price is consolidating below its all-time high of $4,867 following a 45% rally from a low of $3,354 on August 3. According to trader Mister Crypto, the target is now clearly $6,000, with bulls focused on pushing the price above $4,700 as a key resistance level. A successful move beyond that could trigger a next wave of buying, potentially driving Ether toward $6,150 [1].

Meanwhile, the percentage of ETH supply held on exchanges has fallen to 12.36%, the lowest since July 2016, according to Glassnode data [1]. This drop in exchange-held supply is being interpreted as a sign of a “supply squeeze,” where strong demand meets a dwindling available supply, potentially fueling further price appreciation.

Traders are pointing to increasing institutional demand as a key driver of this trend, with spot Ethereum ETFs and treasury companies aggressively buying ETH. Popular trader Merlijn The Trader highlighted that only 18.5 million ETH remains on exchanges, noting that “when scarcity meets demand, price doesn’t go sideways. Supply squeeze incoming” [1].

Additionally, over 35.7 million ETH is currently staked (30% of the total supply), according to UltraSound Money, reinforcing the idea of strong holder conviction and reduced sell-side pressure [1]. The combination of a shrinking exchange supply and growing accumulation suggests that market participants are preparing for a long-term bullish phase.

While some analysts have made more ambitious forecasts, suggesting a potential top range of $12,000 to $30,000 for ETH, these projections remain speculative and should not be treated as actionable investment advice. The success rate of a bull flag pattern is approximately 54%, indicating that while the signal is positive, it is not a guaranteed outcome [1].

Source: [1] Ether bull flag targets $6K as ETH supply on exchanges falls to 12% (https://cointelegraph.com/news/ether-bull-flag-targets-dollar6k-as-eth-supply-on-exchanges-falls-to-12percent)