Ethereum is trading at $4,639 as bulls eye the critical $5,000 psychological level. The second-largest cryptocurrency has gained over 13% in two weeks following its recovery from $4,070 in early September.
The cryptocurrency currently holds a market capitalization of $559.9 billion with daily trading volume reaching $27.9 billion.
Exchange reserves have fallen to 18.8 million ETH, marking the lowest level since 2016. This supply squeeze creates upward pressure on price as fewer tokens remain available for immediate selling.
ETH is leaving EXCHANGES at the fastest pace ever!🚨
Reserves just plunged to 17.2M ETH!
🔸 ~25M in 2023
🔸 Down 30%+ in <2 years➡️ The sell-side inventory is evaporating. pic.twitter.com/TbJkRACHB9
— Leon Waidmann 🔥 (@LeonWaidmann) September 10, 2025
Staking activity has surged across the network. Over 36 million ETH is now staked, representing approximately 30% of the total supply. This reduces circulating supply and tightens overall liquidity.
Whale wallets and institutions continue accumulating ETH positions. Addresses holding over 10,000 ETH have been adding to their holdings over recent months, demonstrating confidence in the token’s long-term prospects.
Technical analysis reveals ETH trading within an ascending channel pattern. The price has been making higher lows while testing the channel’s upper boundary.
The breakout above $4,450 was confirmed by strong bullish candlestick patterns. Long green candles and a bullish engulfing formation supported the upward move.
Key support levels sit at $4,550 and $4,425, where the 50-day simple moving average provides backing. The long-term floor remains at the 200-day SMA at $3,994.
Resistance levels target $4,760, followed by $4,945 and $5,135. These levels represent previous rally peaks where selling pressure emerged.
The Relative Strength Index has cooled from 69 to 60, providing room for further upside without signaling overbought conditions. This cooling suggests healthy consolidation rather than weakness.
On-Balance Volume recently flashed an accumulation signal before the latest price advance. Trading volume increased 12.26% in 24 hours to $43.4 billion, confirming the momentum behind the move.
Ethereum experienced a dominance resurgence in July and August as altcoin season kicked into gear. While Solana gained 12% weekly dominance recently, Ethereum’s 1.8% increase still supported its price action.
SOL achieved a 17% weekly gain compared to ETH’s 7% advance during the same period. This rotation shows how liquidity moves between major altcoins based on relative performance.
Exchange netflows show elevated outflows favoring longer-term storage. This pattern typically occurs when long-term bullish confidence runs high among investors.
The validator exit queue reached 2.6 million ETH as of September 13. However, the 45-day waiting period for exits may defer any potential short-term selling pressure.
Weekly net inflows into the Ethereum network totaled $2.5 billion last week. This exceeded the previous two weeks when markets faced uncertainty and price pullbacks.
The combination of shrinking exchange supply, rising staking participation, and institutional accumulation creates a supportive environment for continued price appreciation.
The post Ethereum (ETH) Price: Bulls Target $5,000 as Exchange Reserves Hit Nine-Year Low appeared first on CoinCentral.
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