The sentiment around Ethereum (ETH) reaching $4,500 is strongly bullish based on recent market activity and technical analysis. ETH has already surged past $4,000, with some sources reporting it hitting $4,200-$4,300 for the first time since late 2021, driven by institutional inflows, whale accumulation, and retail FOMO. Key points supporting a potential move to $4,500:
Technical Indicators: ETH has broken key resistance levels at $4,000 and $4,200, with analysts eyeing $4,500 as the next psychological and technical target. The Fibonacci 1.618 extension at $4,193 has been cleared, and momentum indicators like RSI (over 70) and MACD suggest sustained bullish pressure, though overbought conditions could lead to a short-term pullback to $4,000-$4,100 before continuing higher.
Institutional Demand: Spot ETH ETFs have seen massive inflows, with $2.4 billion in one week and $5 billion in July alone. Companies like BitMine Immersion and SharpLink Gaming have acquired nearly 2 million ETH since June, and Standard Chartered predicts treasury allocations could absorb 10% of ETH’s supply, fueling price growth.
On-Chain Activity: Whale purchases (e.g., $40.5M for 10,400 ETH) and 7.2 million ETH bought below $4,000 show strong demand. Staking has locked up 36.18 million ETH, reducing liquid supply and supporting price stability.
Network Upgrades: The Dencun upgrade and proto-danksharding are enhancing Ethereum’s scalability and reducing gas fees, boosting Layer 2 adoption (Arbitrum, Optimism, zkSync) and driving on-chain activity.
Social Sentiment: Posts on X reflect optimism, with users like @MisterSpread and @TalatiTapan predicting $4,500-$4,800 soon, though some expect a pullback to $4,050 before the next leg up.
Risks: Overbought RSI levels and potential profit-taking could trigger a dip to $3,800-$4,000. If support at $3,470 fails, a deeper correction to $3,000 is possible.
Outlook: If ETH holds above $4,200, $4,500 is a realistic near-term target, potentially by late August or September 2025, with some analysts even projecting $5,000 if momentum persists. However, monitor for short-term corrections due to overbought conditions. Always DYOR, as crypto markets are volatile.