In summary
#Ethereum is trading at $4477, facing resistance at $4500, while momentum builds for a possible test of the $5000 mark.
Currency balances have fallen to a 9-year low, indicating accumulation and long-term investment by investors.
Low sentiment and a modest inflow of 470,000 ETH may fuel a bullish rally, although there are risks at the $4200–$4000 level.
Ethereum is confidently rising since the beginning of the month, gaining strength as market dynamics increase. At the time of writing, the ETH price is around $4540, having broken the resistance level at $4500.
Investor sentiment suggests that the king of altcoins may be gearing up for a rise to $5000.
Ethereum investors are optimistic.
The Ethereum sentiment index is currently below 2.00, which historically indicates a heightened level of fear, uncertainty, and doubt among retail investors. When traders heavily lean towards FUD, the price often moves in the opposite direction, catching skeptics by surprise. This pattern has repeatedly proven effective as a contrarian indicator.
In comparison, Ethereum faced extreme greed among traders on June 16, 2025, and July 30, 2025. Both instances led to price corrections as excessive optimism triggered selling pressure. In contrast, today’s atmosphere of distrust and caution prevails against the backdrop of rising ETH prices, suggesting that sentiment-driven skepticism may, paradoxically, contribute to a rally.
Blockchain data reveals a key trend supporting Ethereum's macroeconomic outlook. Exchange balances have fallen to a 9-year low of 14.88 million ETH, indicating that investors are moving their assets into long-term storage.
Accumulation, albeit modest, bolsters confidence. Over the past week, approximately 470,000 ETH worth $211 million has been acquired. Although the pace is not overly aggressive, the steady influx of funds underscores investor confidence. With decreasing supply and maintained demand, the bullish momentum for Ethereum may persist, especially if overall market sentiment shifts in its favor.
The price of ETH has broken the support level.
The current price of ETH is $4540, slightly above the resistance at $4500. Broader indicators, including declining exchange balances and signals of contrary sentiment, suggest favorable conditions for a breakout. These conditions collectively support an optimistic outlook for Ethereum in the near term.
If $ETH can hold at the support level of $4500, the upward trend may accelerate. This movement will help the cryptocurrency overcome the next resistance at $4749, paving the way for a test of the $5000 mark.
