Ethereum has once again climbed above the $4,500 mark, signaling renewed confidence driven by institutional demand and heavy exchange outflows.
As of Sept. 12, ETH was trading at $4,518, marking a 2.5% increase in the past 24 hours. Despite being down 2.8% over the past month, Ethereum remains just 8.6% below its all-time high of $4,946, reached on Aug. 24.
Daily trading volume stood at $36.38 billion, slightly lower by 0.30%, while derivatives activity painted a stronger picture. Coinglass data showed futures volume rising 5.7% to $97.32B and open interest increasing 2.64% to $61.72B, suggesting traders are actively building new positions.
Long-Term Accumulation Strengthens Support
On-chain data highlights a strong accumulation trend. CryptoQuant analyst Crazzyblockk reported that nearly 1.7 million ETH has been moved into long-term wallets, primarily within the $4,300–$4,400 price range.
Binance played a pivotal role in this trend, recording the largest share of outflows. Interestingly, many of these withdrawals trace back to deposits that began when ETH traded near $3,150, giving long-term holders an average cost basis around $4,300. This shift reflects growing conviction even as prices consolidate.
Institutions Dominate Futures Market
Institutional participation is increasingly shaping Ethereum’s market dynamics. CryptoQuant contributor PelinayPA noted that CME futures open interest has reached record highs, with short-dated contracts (1–3 months) leading the surge, while longer-dated maturities also see consistent growth.
She compared the trend to Ethereum’s previous cycles: low open interest during the 2021–22 bull market, a steep decline through 2022’s bear phase, and a steady recovery from 2023 onwards.
The heightened futures demand, she explained, could drive ETH toward $6,800 by year-end, provided leverage does not unwind too quickly. However, she also warned that higher institutional activity increases the risk of sharper corrections around contract expiries.
Technical Setup: Bulls Eye $4,900–$5,000
From a technical perspective, Ethereum remains in a constructive zone:
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20-day moving average: $4,406 (acting as near-term support)
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Upper Bollinger Band: $4,654 (immediate resistance)
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Relative Strength Index (RSI): 58 (healthy momentum, not overbought)
With momentum improving, traders are watching for a decisive breakout above $4,654, which could open a path toward the $4,900–$5,000 zone. Conversely, failure to hold above $4,158 could expose ETH to a retest of the $4,000 level.
Outlook
Ethereum’s rebound above $4,500 underscores how institutional demand, strong futures positioning, and steady accumulation are supporting bullish momentum. While short-term volatility remains a risk, the broader setup points to continued strength — and possibly new highs — in the months ahead.
