Ethereum's Bullish Pennant Indication: Could a $5000 Threshold Be Breached?
Ethereum, the second-largest cryptocurrency by market capitalisation, is currently trading around $4,500, with key support levels around $4,400 to $4,500. The Ethereum price structure is holding inside a tightening range, with traders eyeing the $4,700-$4,800 level as the next point of clearance.
Analysts are bullish about Ethereum's potential for a breakout above $4,800. Mister Crypto has pointed out a potential target of $5,800, while another analyst, A Break Above, suggests that a break above the $4,700-$4,800 level with volume could lead to another road towards $5,000.
The Ethereum price movement has formed a bullish pennant, with rising support and falling resistance, indicating a potential for upward momentum. This bullish outlook is supported by the reduction in Ethereum on exchanges, which has dropped to 16.9 million ETH, marking the lowest level seen in several years. This suggests more coins are being moved to private wallets or long-term storage, reducing sell pressure.
Every dip in Ethereum price is being bought, according to Merlijn Trader, indicating reduced sell pressure. This trend is further supported by the increase in the number of Ethereum addresses holding over 10,000 ETH, a significant increase in unrealized profit levels comparable to those last seen at the peak of the 2021 bull market.
Institutional investors and entities like Republic Technologies have significantly increased their Ethereum holdings, contributing to the rise in wallets holding more than 10,000 ETH. This trend is part of a broader institutional shift towards structured digital asset treasuries valued at $25 billion in Q3 2025, reflecting a preference for long-term on-chain asset holdings over speculative trading.
Larger Ethereum accounts have shown a trend of selling or inactivity, but recent shifts suggest they might be positioning for a potential move higher, given the asset's trading above $4,500 for most of September. The 'Ethereum supply shock' due to institutions and larger buyers removing ETH from public markets, as noted by Merlijn Trader, further supports this bullish outlook.
However, the upper range for Ethereum is around $4,700 to $4,800, which remains an obstacle. For now, $4,400 support is holding for Ethereum price. Short-term trend indicators for Ethereum remain in positive territory, with moving averages still pointing upward.
In conclusion, Ethereum's price action, reduced sell pressure, and increased institutional interest suggest a bullish outlook for the asset. The $4,700-$4,800 level remains a key resistance level, but with the current trends, a break above this level could lead to further upward momentum.
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