In summary
The price of Ethereum is supported by one of the largest outflows of funds from exchanges since July, demonstrating a strong decline in purchases.
The buy-sell ratio among takers briefly rose above 1, which is a signal that has historically preceded a rise.
Institutional investors, including BlackRock, transferred about $892 million from Bitcoin to ETH, boosting the optimistic sentiment.
The price $ETH held above most other cryptocurrencies during the recent sell-off. The token tested the $4300 mark but quickly bounced above $4500, showing a weekly increase of 11%. Meanwhile, Bitcoin lost 1.6% over the week.
Traders are now wondering if Ethereum can surpass the $5000 mark, one of the most sought-after price levels. Blockchain data indicates strong buying pressure, and experts believe that the growth potential is far from over.
The outflow of funds from exchanges highlights the interest in purchases
One of the most obvious signals is the net flow of funds on exchanges. When more ETH leaves exchanges than comes in, it means that traders are moving coins to wallets—usually for storage rather than sale.
On August 26, the outflow of funds from exchanges reached nearly 287,000 ETH. This is the second-largest figure since July 31 when more than 316,000 ETH was withdrawn in a single day. This was preceded by a rise in the price of Ethereum from $3930 to $4750 over several days.
Moreover, it has been recently noted that BlackRock is withdrawing capital from Bitcoin and acquiring Ethereum worth about $89 million, which made up the bulk of the recent outflow.
This model suggests that large players continue to buy on dips, even though the market as a whole demonstrates weakness.
The taker buy-sell ratio adds confirmation
Another indicator supporting this trend is the taker buy-sell ratio. It shows how aggressive buyers are on exchanges. A value above 1 means that buyers are 'lifting offers'—placing sell orders at the asking price rather than waiting for a reduction.
In short, they aim to buy everything available without bargaining and waiting for the price to reach the desired level.
On August 26, the ratio briefly rose above 1 for the first time since August 20. Previous local peaks above 1, such as on August 9 and 12, were accompanied by a strong rise in the price of Ethereum.
The last spike was the highest since mid-August, despite the drop in the price of ETH.
So far, the relative dynamics of ETH have been determined by investments in digital assets that bet on Ethereum's role in DeFi and tokenization. Furthermore, unlike Bitcoin, ETH is not just capital appreciation—it allows holders to earn income from staking the token. This is a very attractive proposition for long-term BTC holders and companies dealing with digital assets, which may shed light on why some BTC whales have invested about $2 billion in ETH just in the last few days—and continue to grow.
Key price levels for Ethereum and the path to $5000
Despite the recent volatility, the price of Ethereum is still trading near important resistance at $4623. Breaking through this zone could open the way to $4749 and then to the psychological level of $5000. If momentum persists, analysts also consider $5213 as the next technical target.
The overall picture favors Ethereum, with staking yields and institutional adoption as long-term drivers, as well as in recent days, whales have transferred billions of dollars from Bitcoin to ETH, which has intensified demand.
"Finally, a possible decrease in the Federal Reserve's interest rate opens up retail capital, which will only intensify the frenzied demand for ETH. Collectively, this could soon send ETH priced under $5000 into history"
At this point, Ethereum's trajectory depends on whether buyers can hold support levels while simultaneously advancing towards resistance. If history repeats itself, the recent outflow of funds and sharp increase in the share of takers could serve as a catalyst for a new growth cycle.
It is worth noting that the bullish trend for Ethereum will only be nullified if the $4066 mark is surpassed. Any level above this may lead to a bounce, primarily due to buyers reallocating capital.