Well, it looks like Ethereum is making a bit of a comeback. After a few shaky weeks, it’s climbed back above $4,500. That’s a solid move, even if it’s still a ways off from its all-time high back in August. I think a lot of people were watching that $4,300 to $4,400 level, and it seems like that’s where a lot of the action was.
Steady Hands Are Buying
Apparently, a good chunk of ETH—something like 1.7 million coins—was scooped up in that range. Most of that buying pressure seems to have come from funds moving off of major exchanges, Binance in particular. That usually suggests accumulation. You know, longer-term holders deciding it’s a decent price to get in, or maybe shift their holdings into safer wallets. The average cost basis for those moves sits around $4,300, which is interesting. It tells you that folks who’ve been around aren’t necessarily taking profits here. They’re maybe just repositioning, expecting more to come.
Institutions Are Paying Attention
It’s not just retail traders, either. Over on the CME—that’s the Chicago Mercantile Exchange—open interest for Ethereum futures has hit a record high. That’s generally a sign of more institutional money coming into the space. Most of the action is in shorter-term contracts, but even longer-dated ones are seeing growth. One analyst drew a comparison to previous cycles, pointing out that open interest was pretty low during the last bull run, crashed hard in the bear market, and has been steadily rebuilding since last year.
This kind of institutional participation adds a different flavor to the market. It can fuel bigger rallies, for sure. But it also might mean sharper moves around contract expirations. There’s a view out there that if leverage doesn’t unwind too violently, ETH could even test much higher levels before the year is out. Maybe something like $6,800. That feels optimistic, but not completely out of the question.
What’s Next for the Price?
From a technical standpoint, things look okay. The price is still holding above its key 20-day moving average, which is a good sign. The next big hurdle is up around $4,650. If it can push through that, the door might be open for a run toward $4,900 or even $5,000. But it’s not all clear sailing. Some momentum indicators are giving mixed signals, suggesting we could see some dips along the way.
The key level to watch on the downside is probably around $4,150. If that doesn’t hold, a slide back toward $4,000 becomes a lot more likely. For now, though, the mood seems cautiously optimistic. Steady accumulation and institutional interest are providing a halfway decent foundation. We’ll see if it holds.
