Ethereum has regained the $4,500 level as institutional demand and steady accumulation strengthens confidence in its long-term outlook.
summary
- Ethereum traded at $4,518, up 2.5% per day, but exceeded 8.6% on August 24th.
- Data on the chain shows that 1.7 million ETHs have accumulated in the $4,300-4,400 range led by the Binance outflow.
- Futures have reached record highs in CME, reflecting an increase in institutional participation.
Ethereum (Eth) rose above $4,500 on September 12, trading at $4,518 at press, up 2.5% over the past 24 hours.
Currently, the second-largest cryptocurrency is just 8.6% below its peak at $4,946 on August 24th. ETH rose 4.4% last week, but is down 2.8% from the previous month.
Ethereum’s trading volume reached $363.8 billion in the last 24 hours, a slight 0.30% decline. Coinglass data shows that derivatives volumes rose 5.7% to 97.32B, while open interest rose 2.64% to 61.72B, indicating new positioning in the futures market.
ETH accumulation builds around $4,300-4,400
In a September 11 post on Cryptoquant, contributor CrazzyBlock said buyers are steadily accumulating ETH in the $4,300-4,400 range, with around 1.7 million ETH being added to their long-term wallets. He cited Binance as important as it handled the most spills during this accumulation stage.
Although ETH deposits to Binance began at a level close to $3,150, the average cost base for these withdrawals is around $4,300, indicating that long-term holders are shifting positions as new demand increases.
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Institutions drive demand for ETH futures
Another crypto contributor, Pelinaypa, noted that open interest in CME futures has increased to an all-time high, particularly in short-term contracts with maturity for 1-3 months. Longer contracts are also growing.
She likened the structure to the previous Ethereum cycle, which had low interest opened in the bull market in 2021-2022, crashed in the bare market in 2022, and steadily recovered from 2023-2024.
She said strong institutional participation is evident in the current market. She said there is a high open interest that promotes both upward momentum and the possibility of a more serious correction at expiration. According to Pelinaypa, if leverage doesn’t unleash too quickly, ETH could test $6,800 in resistance by the end of the year.
Ethereum price technology analysis
Price action supports constructive outlook. ETH is still trading above the 20-day moving average, close to $4,406, while the $4,654 upper bollinger band serves as a resistance. The relative strength index is 58, indicating stable demand without approaching the acquired territory.
Ethereun Daily Chart. Credit: crypto.news
The momentum has become more positive. However, conflicting signals from the oscillator and MACD means that short-term pullbacks are still feasible. Traders may cover the $4,900-$5,000 range if they maintain breakouts with prices above $4,654. If it fails to exceed $4,158, ETH could be vulnerable to a decline in the $4,000 mark.
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