Disparate Trends in Ethereum Exchange Data: The Peculiar Split Revealed in Two Graphs
Ethereum, the second-largest cryptocurrency by market capitalisation, is currently hovering around the $4,200 mark, with the $4,400 resistance level looming ahead. This resistance level is a significant hurdle, given recent selling pressure and consolidation that have triggered a corrective phase.
In the short term, Ethereum's price action shows a mix of bullish and bearish signals. The cryptocurrency peaked near $4,800 but encountered selling pressure, leading to a consolidation between $4,200 and $4,350, a critical support zone. The immediate resistance to break is $4,400, with further resistance at $4,550–$4,700.
The Relative Strength Index (RSI) has entered "overbought" territory, indicating possible small pullbacks and short-term bearish signals amid strong momentum. A breakdown below the $4,200 support could deepen the correction, with further support at $4,100 and $3,950. However, defending the $4,200 level strongly could trigger a rebound toward higher resistance levels, sustaining the short-term bullish trend.
Despite these short-term corrective signals, the long-term trends remain bullish. Institutional interest and inflows have increased considerably, with Ethereum futures open interest surging to around $60 billion in mid-August 2025, up 250% from April. This surge signifies growing confidence and bullish bets among institutions.
Ethereum spot ETFs have also seen record inflows, with more than $1 billion flowing in a single day and monthly net inflows for August on track for their biggest month ever ($1.72 billion), reflecting strong Wall Street demand.
Analysts' forecasts remain optimistic for the medium to long term, with predictions of Ethereum reaching $5,200+ by mid-September and potentially $7,500–$15,000 by year-end due to ETF accumulation, institutional activity, and favourable macroeconomic factors like possible interest rate cuts.
Binance, as a major exchange, contributes significantly to Ethereum's momentum and broader bullish outlook. High transaction activity and network usage on Binance are consistent with strong inflows that drive price appreciation. Record network usage, with daily transactions and active addresses at multi-year highs, further validates the genuine demand and investor confidence that underpin sustained Ethereum price strength.
In conclusion, Ethereum's near-term outlook is mixed, with the $4,400 resistance a key hurdle amidst short-term corrective signals. However, the broader trend remains strongly bullish, driven by institutional inflows, ETF demand, and robust on-chain activity. Maintaining support around $4,200 is crucial, while continued strength in Binance inflows and overall market confidence can fuel a breakout toward higher targets.
Trading Ethereum could confront a short-term challenge at the $4,400 resistance level, given the current selling pressure and consolidation, as this level represents a significant hurdle in the near term. However, institutional interest and inflows, along with the increase in Ethereum futures open interest and the record inflows into Ethereum spot ETFs, indicate a long-term bullish trend for the cryptocurrency.
