Ethereum (ETH) price is once again in the spotlight as traders speculate whether the recent dip has marked a potential bottom. After weeks of volatility, ETH is showing early signs of recovery, sparking discussions about how high the next Ethereum rally could go. With strong support zones holding firm and growing optimism in the broader crypto market, analysts believe Ethereum may be gearing up for a decisive move.
The question now is, can the ETH price break past resistance and ignite a powerful bullish trend?
The fundamentals are increasingly supportive of a bullish outlook. Currently, more than 36.1 million ETH is staked, representing nearly 30% of the total supply, which reduces selling pressure in the open market. At the same time, U.S. spot Ethereum ETFs have already crossed $30 billion in assets, with cumulative inflows of around $13.6 billion since their launch. Notably, August alone saw $3.87 billion in net inflows, highlighting strong institutional demand. With supply tightening and fresh capital flowing in, Ethereum appears well-positioned for its next major rally.
Has the ETH Price Reached the Bottom?
Since the start of August, the Ethereum price has been trying to secure the crucial resistance at $4700. Woefully, the bulls were unable to do so, resulting in a strong rejection, bringing the rally close to the important support zone. However, the on-chain data reveals the price may have reached the lows as the OI or the Open Interest, has flipped negative.
A renowned analyst, Crypto Rover, shared an ETH/USDT chart with OI and the aggregated liquidations, which suggests the rally is repeating a previous pattern. Both levels have reached a similar range, following which the ETH price triggered a strong breakout. The price has experienced a strong upswing and is believed to rise in the next few days. As the levels are just 20% away from the current highs, a new ATH could be on the horizon.
Will Ethereum Price Rise Above $5000?
In the past few days, the Ethereum price has been facing massive upward pressure after remaining elevated for more than a couple of months. The price is trading very close to the psychological barrier at $4000, and the current pullback mirrors the previous 16% dip before a rally. On the other hand, the ETH balance on the exchanges has been constantly depleting and reached a 9-year low, hinting at the optimism among the investors. Therefore, the upcoming monthly close could be crucial for the ETH price rally, as a close above $4500 could lead the rally to a new ATH in Q4, 2025.
