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Ethersprice 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.

Despite this performance, analysts believe that Ether (ETH)still remains one of the altcoins displaying the most upside potential at the moment.

Im betting on the ETH ecosystem, and it holds a crucial support level, MN Capital founder Michal 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 Ethers price a few days after the approval of spot Ether exchange-traded funds (ETFs)by the United States 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.

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 w previously bought by roughly 2.86 million addresses, has the potential to absorb any selling pressure threatening to push the price lower.

Drawing from the price action on the 12-day timeframe, pseudonymous technical analyst Yoddha observed that ETH had bounced off this support level in the recent past to produce a candlestick close above its yearly highs.

Historically, Ethers return above yearly highs has preceded exponential price growth, as shown in the chart below. Yoddha suggested 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.

Ethers bullishness is supported by increased investor accumulation, evidenced by massive outflows from centralized exchanges. This accumulation activity may be due to bullish events on the horizon, like the expectation of a spot Ether ETF market debut in the coming months.

Data from CryptoQuant reveals that about 460,000 ETH valued at $1.58 billion at current rates was withdrawn from centralized exchanges between June 9 and June 11. This marks the fifth time in 2024 that the exchanges have seen a single-day outflow of more than 400,000 ETH, signifying a highly bullish momentum for the smart contract token.

Similar observations were made by crypto analyst Daan Crypto Trades, who observed a massive net outflow of ETH from the U.S.-based crypto exchange Coinbase on June 11, the day the altcoin saw the largest correction since April 30.

This could be explained by a variety of things, the analyst said in a June 13 post on X, adding, Regardless, net outflows have been going up for ETH, which is always good to see.

It could also be due to increased whale activity, as Ali Martinez observed on Tuesday. Whales have taken advantage of recent dips to accumulate more Ether.

This suggests that high demand-side pressure arising from increased whale accumulation and reduced supply on exchanges will create a supply deficit that eventually pushes Ethers price above $4,000 and into a parabolic uptrend.

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Traders: Ethereum is the 'most bullish altcoin' as ETH reclaims $3.5K - Cointelegraph