Ether Accumulation Trends and Institutional Demand
Ether (ETH) has been trading sideways between $4,200 and $4,500 this month, showing signs of fading dynamics. The lack of decisive purchase pressure raises concerns about short-term weakness, but on-chain data indicates a deeper accumulation trend may be underway. According to Cryptoquant data, around 1.7 million ETH (approximately $7.5 billion) have been accumulated in the range of $4,300 to $4,400, creating strong support.
This significant accumulation is reflected in the Exchange Flow analysis, which shows that Binance has played a crucial role in this process, handling the largest withdrawals during the accumulation phase. Interestingly, the average cost base of ETH deposits on Binance is closer to $3,150, indicating different positioning between long-term investors and active traders.
Institutional demand is also shaping the current market, with open interest (OI) in CME reaching all-time highs, particularly in short-term contracts (one to three months). While this increases the volatility risk for contract expiration, it also signals aggressive institutional participation. Long-term contracts (three to six months) are also building up, reflecting more confidence in the prospects of ether.
Technical Analysis and Price Projections
From a technical perspective, ether’s price action continues to be indecisive. The asset has been trading largely between $4,200 and $4,500 in September, while other crypto assets like Bitcoin and Solana have shown higher highs. This deviation indicates short-term capital rotation into other majors, although a decisive break above $4,500 could quickly shift attention back to ether.
Crypto trader Merlijn believes the likelihood of an immediate rally remains higher, as a key monthly indicator has turned green. The trader notes, “MacD has just turned green.
Crypto analyst Pelin Ay expects ether to reach the resistance level of $6,800 by the end of the year, citing increased institutional demand and positioning. However, the risk of lower liquidity forwarding remains increased, with the main level of support around $4,200 and a notable order block/demand zone between $4,000 and $4,100.
This article does not contain investment advice or recommendations. Every investment and trade movement carries risk, and readers should conduct their own research before making a decision.
Source: cointelegraph.com
