Key Insights
- Ethereum price is now holding above $4,300 with strong institutional inflows backing technicals up.
- On the technical side, Ethereum could be looking at a possible run toward $5,000.
- Profit-taking from short-term holders is increasing near resistance levels, but bullish targets are still valid.
Ethereum price has stayed firm above the $4,300 mark on August 12. It is edging closer to the $4,400 resistance. ETH is trading around $4,360 with buyers showing strong interest from both institutional and retail sides.
This steady climb comes after an 18% rally of the Ethereum price over the past week. The move has already liquidated $184 million in shorts within a single day, according to data from Coinglass. Also, Futures open interest now sits at $51.6 billion.
Institutional Demand Strengthens the Ethereum Price Rally
Data from SosoValue shows that Ethereum-backed exchange-traded products drew $326.8 million in net inflows between August 4 and 8. This stands as one of the strongest weekly inflows for ETH products throughout the year.
Major holders are also stepping up. For example, Bitmine, the largest Ethereum treasury holder, now controls over 1.15 million ETH worth roughly $4.96 billion. The company’s Chairman, Thomas Lee, says that the firm aims to stake 5% of the total ETH supply.
Asian Markets Push Ethereum Price to Local Highs
Ethereum price has hit all-time highs in Japan and South Korea. In Japan, the asset reached 639,455 yen and broke its December peak. On the other hand, in South Korea, it crossed the 5.97 million won mark.
These gains are interesting because the yen and won have recently gained strength against the U.S. dollar. Analysts believe this shows genuine demand in local markets rather than currency-driven changes in price.
Favourable policy changes are also adding fuel to the bullish narrative. A recent U.S. executive order allows cryptocurrencies in 401(k) retirement plans. This could drive trillions worth of inflows into the market.
Ethereum Price Technical Setup
The main resistance for ETH currently sits around $4,430. A clean break above this could open the path toward $4,827, the all-time high from the last bull run.
Some analysts are even predicting the possibility of Ethereum price reaching $5,000 or even $7,000 in this cycle. For example, Crypto trader Ali Martinez recently pointed to pricing band analysis.
He noted that $5,241 could be the next target if ETH clears $4,300 decisively. Support currently sits at around $3,909. If the Ethereum price falls below this, the next level would be near $3,700. There, the previous buying activity has been strong.
Layer 2 and DeFi Expansion
Ethereum’s Layer 2 solutions show steady growth regarding total value locked and transaction counts. This expansion is expected to improve scalability and reduce gas costs. As such, the network is expected to become more attractive for developers and users.
Upgrades have also improved validator rewards and gas fee efficiency, encouraging more staking activity. The staking ratio continues to rise and offers steady income for long-term Ethereum investors.
Profit-Taking on the Rise
On-chain data from Glassnode, however, shows that short-term ETH holders are taking profits more aggressively than long-term holders. Profit realisation now averages $553 million daily, measured over a seven-day moving average.
Long-term holders, or those with ETH for over 155 days, are taking profits at levels similar to December’s levels. This indicates that the current wave of selling is mostly from recent buyers locking in gains after the recent increase.
Ethereum price is still about 12.7% below its all-time high. The liquidation data from Coinglass showed that $2.23 billion in positions could be at risk if prices approach $4,700.
Short-Term Outlook for Ethereum Price
ETH has tested $4,300 multiple times recently. Analysts are currently split on whether the next move will be a akouaveragesllback.
According to Santiment analyst Brian Quinlivan, news of large institutional buys can sometimes trigger short-term selling due to FOMO-driven entries. However, the total ETH held by companies with crypto treasuries has now risen to 3.04 million ETH, worth about $13 billion.
