Ethereum is witnessing strong price growth thanks to outflows from exchanges, reinforcing the outlook for establishing a new peak around 5,000 USD despite potential short-term volatility.
Record ETH outflows, social media attention, and a dominating Long order ratio highlight positive expectations, but investors should beware of liquidation clusters and key resistance areas to manage risk.
MAIN CONTENT
Ethereum reached its lowest exchange inventory in 9 years with over 2 billion USD in ETH withdrawn in a week, indicating a strong accumulation trend.
The high Long ratio in the derivatives market reflects expectations for prices to exceed 5,000 USD despite the risk of significant volatility around the 4,200-4,400 USD range.
The increase in social media attention combined with large liquidation clusters signals that a rally could explode if key resistance levels are successfully breached.
What is currently notable about Ethereum?
Ethereum is showing strong upward momentum due to the outflows from exchanges and the accumulation trend of investors, opening up the possibility of a breakout to higher price levels despite potential short-term volatility.
"The amount of ETH on exchanges has hit a 9-year low, with nearly 2 billion USD withdrawn in just one week, reinforcing the accumulation sentiment and reducing selling pressure."
On-chain data report, Santiment, 2025
The sharp decline in ETH inventory on exchanges – down to only 14.88 million ETH, the lowest level since 2016 – means that holders are prioritizing self-custody wallets over exchanges. History shows that reduced inventories always lead to decreased selling pressure, laying the foundation for a sustainable bullish wave. A net outflow of nearly 2 billion USD in ETH over the past week reinforces confidence in the strong accumulation phase of both individuals and institutions.
This trend reflects not only the confidence of large investors but also the potential for the market to witness a significant breakout if key resistance areas are conquered.
What are the signs that Ethereum investors are strongly accumulating?
On-chain data shows net ETH withdrawals from exchanges reaching nearly 2 billion USD in 7 days, bringing inventory to its lowest level in 9 years and laying the foundation for a long-term bullish wave.
When ETH leaves exchanges, immediate selling pressure drops significantly. Previously, such periods often triggered strong growth waves for Ethereum's value, also indicating that short-term holders have largely exited the market.
"Withdrawing ETH from exchanges is a smart cash flow indicator. When this cash flow combines with other positive technical indicators, the likelihood of establishing a new peak increases."
Charles Edwards, CEO of Capriole Investments, 2023 (source: Twitter/X)
Looking at the accumulation picture, if this trend continues, ETH could easily exceed historical resistance levels, expanding the bullish momentum as consensus among large holders becomes increasingly strong.
Could a correction occur before reaching 5,000 USD?
Ethereum just dropped to around 4,253 USD after setting a peak near 4,783 USD, forecasting a potential short-term correction to the 4,000 USD range before retesting the 5,000 USD mark.
Corrections after hot rallies often occur, especially when momentum indicators remain strongly bullish. The positive point is that the DMI (Directional Movement Index) maintains a bullish signal: ADX at 46.42, +DI (30.97) far exceeds –DI (15.47), confirming demand clearly outweighs supply.
"Adjustments before major resistance areas often help cleanse leverage and solidify price foundations, preparing for a new bullish wave."
Analysis report, Glassnode, August 2025
However, protecting the 4,000 USD threshold is crucial. If this area is deeply breached, selling pressure will increase and may delay the process of conquering a new peak in the short term.
What is the current sentiment and positioning of Ethereum investors?
Derivative data (Binance) shows a 64.36% Long position compared to 35.64% Short, with a Long/Short Ratio at 1.81 reflecting the dominance of bullish expectations.
This data indicates that most traders believe in ETH's ability to recover its upward momentum in the medium term. However, overly strong Long sentiment carries risks when corrections occur: high leverage easily facilitates large-scale liquidation waves, continuously amplifying volatility.
"The superior Long ratio reflects strong confidence but also requires strict risk management, especially when the market experiences large liquidation clusters."
CoinGlass report, August 2025
Therefore, controlling leverage use and closely monitoring areas with high liquidation risks will help investors proactively protect against any adverse volatility that may occur in the short term.
Is community attention towards Ethereum increasing rapidly?
Ethereum's Social Dominance index recorded a level of 10.16%, previously exceeding 17% in recent weeks, indicating superior interest from both retail and institutional investors.
Typically, social discussion bursts are a precursor signal for important price milestones as community sentiment can strongly impact cash flows. However, relying solely on social hype is insufficient to solidify sustainable uptrends and requires confirmation through technical indicators (accumulation, cash flow, volume...).
"The more actively the community discusses, the more confident investors become, but a sustainable bullish wave must be confirmed by on-chain accumulation charts."
Santiment Insights, Cryptocurrency social network analysis, 2025
With current media strength, if the market continuously accumulates and establishes new resistance levels, ETH could become the center of the upcoming DeFi sector rally.
What do large liquidation clusters in the ETH market indicate?
The ETH/USDT liquidation heatmap on Binance indicates dense liquidation clusters around the 4,200 – 4,400 USD price range – where leveraged trading activity has surged.
These are areas prone to strong volatility: if ETH tests these levels and cash flow is not strong enough, the scale of liquidation orders could cause a domino effect, pulling prices down to lower support zones. Conversely, when the market absorbs and successfully breaks through liquidation clusters, selling pressure is eliminated, creating a springboard for a breakout to the 5,000 USD mark.
Active investors and traders need to closely monitor these heatmap indicators to stay updated on potential large fluctuations that may occur at any time in the derivatives market.
Will Ethereum maintain its upward trend towards 5,000 USD?
The combination of factors: ETH outflows from exchanges, dominating Long positions, social media attention, and the structure of liquidation clusters all reinforce the sustainable bullish outlook for Ethereum.
Although the possibility of ETH testing the 4,000 USD support cannot be ruled out, the short-to-medium-term bullish structure remains intact if buying orders continue to lead the market and resistance levels are successfully conquered.
"If the accumulation trend continues to dominate, ETH is fully qualified to establish a new peak above 5,000 USD in the near term."
Market report, AMBCrypto, 18.08.2025
However, price action still needs to closely follow the continuous fluctuations of on-chain data, derivatives, and crowd sentiment factors to proactively manage risk across sensitive price areas.
Frequently asked questions about Ethereum's price outlook
What does the record low inventory on exchanges mean for Ethereum?
The significant drop in ETH inventory on exchanges reflects the accumulation process, reducing selling pressure and indicating that the market expects prices to rise in the future (according to Santiment).
How important are the 4,200 – 4,400 USD price ranges for ETH?
This price cluster has many Long/Short orders using leverage; if liquidated or broken through, it will determine the next upward/correction trend; traders should pay attention to this area from CoinGlass data.
What reasons could lead ETH to correct to the 4,000 USD range?
After a hot rally, technical indicators suggest a possible correction to the 4,000 USD support to absorb profit-taking pressure before the ongoing bullish wave (according to TradingView).
What risks does the high Long ratio on the derivatives market pose for ETH?
A large Long ratio increases the risk of simultaneous liquidations if prices drop sharply, causing higher volatility and potentially driving short-term downward waves if sentiment shifts suddenly.
What impact does social media attention have on ETH's price?
Large volumes of discussion on social media often signal price breakout points, but additional confirmation from cash flow and actual accumulation is needed to maintain a sustainable trend (Santiment Insights).
How to manage risk when the ETH market is highly volatile?
Proper allocation, moderate leverage use, tight stop-losses, and continuous monitoring of on-chain indicators and liquidation heatmaps are principles to apply with ETH.
What factors does ETH's outlook to 5,000 USD depend on?
ETH needs to continue to maintain the accumulation flow, protect the 4,000 USD range, and successfully break through liquidation clusters to create space for further increases towards target levels.
Source: https://tintucbitcoin.com/eth-giu-moc-4-000-usd/
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