Ethereum (ETH) has shown steady growth since the beginning of the month, gaining strong momentum as market dynamics improve. At the time of writing, this altcoin is trading around $4,527.
Investor sentiment indicates that prices may be preparing for a rise to the $5,000 mark.
Optimistic ETH investors
The current ETH sentiment index is below 2 - a level that has previously indicated high fear, uncertainty, and doubt among retail investors. When traders are heavily influenced by FUD (fear, uncertainty, doubt), prices often move in the opposite direction, surprising the skeptics. This pattern has repeatedly proven to be a contrarian indicator.
To clarify, ETH faced extreme greed from traders on June 16, 2025, and once again on July 30, 2025. Both instances led to price corrections when excessive optimism created selling pressure. In contrast, the current context of skepticism and caution occurs while ETH continues to reach higher peaks, suggesting that doubt may be fueling the upward trend.
On-chain data shows that an important trend is supporting ETH's macro outlook. Balances on exchanges have decreased to a 9-year low of 14.88 million ETH, indicating that investors are moving assets into long-term storage.
Accumulation activity, although at a modest level, reinforces market confidence. In the past week, approximately 470,000 ETH (worth $211 million) has been bought. Although the pace is not too strong, the steady capital flow emphasizes investor trust. As supply continues to shrink while demand remains, Ethereum's price increase may continue, especially if the overall market sentiment turns positive.
ETH price needs to reclaim the support area
Currently, ETH is trading at $4,527. Overall indicators, including the reduction of ETH balances on exchanges and contrary sentiment signals, are indicating a favorable environment for a breakout scenario. These factors together reinforce the bullish argument for Ethereum in the short term.
If Ethereum confirms the $4,500 level as a support area, the uptrend could accelerate. This momentum would help the price surpass the next resistance level at $4,749, paving the way to test the $5,000 mark.
However, risks remain if investor sentiment changes abruptly. If holders decide to take profits, ETH's price could slide back to the $4,200 area or even $4,000. Such a decline would weaken the bullish argument, opening the possibility of entering a consolidation phase instead of continuing the current uptrend.