Ethereum has reclaimed the $4,500 level as institutional demand and steady accumulation reinforce confidence in its long-term outlook.
Summary
- Ethereum trades at $4,518, up 2.5% on the day but still 8.6% below its August 24 all-time high.
- On-chain data shows 1.7M ETH was accumulated in the $4,300–$4,400 range, led by Binance outflows.
- Futures open interest hit record highs on CME, reflecting growing institutional participation.
Ethereum (ETH) rose back above $4,500 on Sept. 12, trading at $4,518 at press time, up 2.5% in the past 24 hours.
The second-largest cryptocurrency is currently only 8.6% below its peak of $4,946 on Aug. 24. Although ETH has increased 4.4% in the last week, it has still dropped 2.8% over the previous month.
Trading volume for Ethereum reached $36.38 billion in the past 24 hours, down slightly by 0.30%. According to Coinglass data, derivatives volume increased 5.7% to $97.32B, while open interest climbed 2.64% to $61.72B, showing fresh positioning in the futures market.
ETH accumulation builds around $4,300–$4,400
In a Sept. 11 post on CryptoQuant, contributor Crazzyblockk noted that buyers have been steadily accumulating ETH in the $4,300–$4,400 range, with nearly 1.7 million ETH added to long-term wallets. He cited Binance as being crucial because it handled the most outflows during this accumulation phase.
While ETH deposits into Binance started from levels close to $3,150, the average cost basis for these withdrawals is approximately $4,300, indicating that long-term holders are shifting their positions as new demand increases.
You might also like: SEC delays Ethereum ETF staking decisions for BlackRock, others
Institutions drive ETH futures demand
PelinayPA, another CryptoQuant contributor, noted that open interest in CME futures has increased to all-time highs, especially for short-term contracts with maturities of 1-3 months. Longer-dated contracts are also seeing growth.
She likened the structure to previous Ethereum cycles, in which open interest was low during the 2021–2022 bull market, crashed during the 2022 bear market, and then steadily recovered from 2023–2024.
Strong institutional participation is evident in the current market, she said, with high open interest fueling both upward momentum and the possibility of more severe corrections during expiries. According to PelinayPA, if leverage does not unwind too quickly, ETH may test the $6,800 resistance by year’s end.
Ethereum price technical analysis
Price action supports a constructive outlook. ETH is still trading above its 20-day moving average, which is near $4,406, while the upper Bollinger Band at $4,654 is acting as resistance. The relative strength index is at 58 and indicating steady demand without approaching overbought territory.
Ethereun daily chart. Credit: crypto.news
Momentum has turned positive. However, conflicting signals from oscillators and the MACD imply that short-term pullbacks are still feasible. Traders might target the $4,900–$5,000 range if the price maintains a breakout above $4,654. If it fails to hold above $4,158, ETH may be vulnerable to a decline toward the $4,000 mark.
Read more: Ethereum sees rare mass slashing event with 39 validators penalized
