-
Ethereum has surged to a 7-month high of $3,745, driven by significant investor accumulation and growing market confidence.
-
Over 317,000 ETH have been withdrawn from exchanges, signaling a strong bullish sentiment and reduced selling pressure.
-
According to COINOTAG, Ethereum faces a critical resistance at $4,000, where profit-taking could trigger a short-term correction.
Ethereum hits $3,745 amid heavy accumulation; $4,000 resistance looms with potential correction ahead. Investors show strong confidence with 317K ETH withdrawn.
Ethereum Investors Accumulate Heavily, Reducing Exchange Supply
Ethereum’s recent price surge to $3,745 marks a significant milestone, reflecting a 27% gain over the past week. This rally is underpinned by a substantial withdrawal of over 317,000 ETH from exchanges since early July, equating to approximately $1.18 billion in assets. Such a reduction in exchange-held Ethereum indicates that investors are moving their holdings into private wallets, signaling increased confidence in the asset’s long-term value and a decreased likelihood of immediate selling pressure.
This accumulation trend effectively tightens the available supply on exchanges, creating a supply-demand imbalance that supports upward price momentum. Market participants are positioning themselves ahead of a potential breakout above the psychologically important $4,000 resistance level, which has historically acted as a formidable barrier during bullish cycles.
Ethereum Balance On Exchanges. Source: Glassnode
Further supporting the bullish outlook is Ethereum’s Network Value to Transactions (NUPL) ratio, which is approaching the “Belief-Denial” zone. This metric gauges investor sentiment by comparing unrealized profits and losses, often highlighting potential turning points. Historically, when Ethereum’s NUPL enters this zone, it signals that investors are nearing peak optimism, which can precede short-term price corrections as profit-taking intensifies.
The repeated pattern over the past 16 months suggests that while the current rally is robust, caution is warranted near the $4,000 threshold, where selling pressure could emerge.
Ethereum NUPL. Source: Glassnode
ETH Price Faces Key Resistance at $4,000 Amid Potential Correction Risks
Currently trading at $3,745, Ethereum is positioned just below the critical $4,000 resistance level, a psychological barrier that has historically influenced market behavior. While the momentum is strong, the proximity to this level raises the possibility of a short-term pullback if investors opt to realize profits.
Should profit-taking occur, Ethereum’s price may retreat to the immediate support zone around $3,530. A failure to hold this support could deepen the correction, pushing prices down to $3,131, which would negate recent gains and signal a temporary reversal in the bullish trend.
ETH Price Analysis. Source: TradingView
Conversely, if the accumulation trend persists and investor conviction remains strong, Ethereum could break decisively above $4,000. Such a breakout would likely catalyze a new leg higher, attracting additional buying interest and potentially setting fresh all-time highs. This scenario depends heavily on broader market conditions and sustained demand from both retail and institutional investors.
Conclusion
Ethereum’s ascent to $3,745 underscores a robust accumulation phase and growing investor confidence, with significant ETH withdrawals from exchanges reducing sell-side pressure. However, the $4,000 resistance remains a pivotal level that could either propel ETH to new highs or trigger a short-term correction. Market participants should monitor key support levels closely and remain attentive to profit-taking signals as Ethereum navigates this critical juncture.
