Ethereum Reclaims $4,500 Level Amid Strong Institutional Demand

Ethereum has reclaimed the $4,500 level as institutional demand and steady accumulation reinforce confidence in its long-term outlook. This resurgence in price is a significant indicator of the market’s confidence in Ethereum’s future.

Current Market Standing

Ethereum rose back above $4,500 on Sept. 12, trading at $4,518 at press time, up 2.5% in the past 24 hours. The second-largest cryptocurrency is currently only 8.6% below its peak of $4,946 on Aug. 24. Although ETH has increased 4.4% in the last week, it has still dropped 2.8% over the previous month.

Trading Volume and Derivatives

Trading volume for Ethereum reached $36.38 billion in the past 24 hours, down slightly by 0.30%. According to Coinglass data, derivatives volume increased 5.7% to $97.32B, while open interest climbed 2.64% to $61.72B, showing fresh positioning in the futures market.

Accumulation and Institutional Demand

ETH accumulation builds around $4,300–$4,400. In a Sept. 11 post on CryptoQuant, contributor Crazzyblockk noted that buyers have been steadily accumulating ETH in the $4,300–$4,400 range, with nearly 1.7 million ETH added to long-term wallets. He cited Binance as being crucial because it handled the most outflows during this accumulation phase.

Impact of Institutions

Institutions drive ETH futures demand. PelinayPA, another CryptoQuant contributor, noted that open interest in CME futures has increased to all-time highs, especially for short-term contracts with maturities of 1-3 months. Longer-dated contracts are also seeing growth. Strong institutional participation is evident in the current market, she said, with high open interest fueling both upward momentum and the possibility of more severe corrections during expiries.

Technical Analysis

Ethereum price technical analysis supports a constructive outlook. ETH is still trading above its 20-day moving average, which is near $4,406, while the upper Bollinger Band at $4,654 is acting as resistance. The relative strength index is at 58 and indicating steady demand without approaching overbought territory. Momentum has turned positive, however, conflicting signals from oscillators and the MACD imply that short-term pullbacks are still feasible.

Future Outlook

Traders might target the $4,900–$5,000 range if the price maintains a breakout above $4,654. If it fails to hold above $4,158, ETH may be vulnerable to a decline toward the $4,000 mark. According to PelinayPA, if leverage does not unwind too quickly, ETH may test the $6,800 resistance by year’s end, indicating a positive outlook for Ethereum driven by strong institutional demand and accumulation. For the latest updates and analysis on Ethereum and other cryptocurrencies, visit bitpulse.