Ether Holds $7.5B Accumulation Base as Analysts Eye $6,500 Target by Year-End

Ether Consolidates Around $4,500 Amid Strong On-Chain Accumulation

Ether (ETH) continues to trade in a narrow range between $4,200 and $4,500, reflecting a pause in momentum despite robust accumulation trends. On-chain data reveals that approximately 1.7 million ETH, worth $7.5 billion, has been absorbed by accumulation addresses within the $4,300 to $4,400 price range. This accumulation establishes a crucial support zone that could underpin Ether’s price should it test lower levels.

Exchange flow analysis highlights Binance as a key participant, with significant outflows during this accumulation phase. Notably, addresses depositing ETH onto Binance show an average cost basis near $3,150, suggesting varying strategies between long-term holders and more active traders.

Institutional Demand Hits New Highs on CME

Institutional interest in Ether is intensifying, evidenced by record open interest (OI) levels on the Chicago Mercantile Exchange (CME). The surge is predominantly driven by short-term maturities spanning one to three months, which could increase volatility around contract expirations. However, open interest in longer maturities (three to six months) is also rising, indicating growing institutional confidence in Ether’s medium-term prospects.

Crypto analyst Pelin Ay interprets these developments as bullish, stating, “My expectation is that ETH could reach the $6,800 resistance level by year end.” While acknowledging elevated liquidation risks, Ay suggests the broader uptrend remains intact.

Technical Outlook: $4,500 as a Pivotal Level

From a technical perspective, Ether has shown indecision in recent weeks, trading sideways between $4,200 and $4,500. This contrasts with other major cryptocurrencies like Bitcoin and Solana, which have posted higher highs. The divergence indicates short-term capital rotation away from Ether, but a decisive breakout above $4,500 could restore upward momentum.

Conversely, downside risk persists with key support zones around $4,200 and a notable demand block between $4,000 and $4,100. Should Ether’s price weaken heading into the fourth quarter, a retest of these levels is plausible before any sustained rally.

Crypto trader Merlijn highlights a positive technical signal, noting, “MACD just flipped green. Three years of pressure coiled and ready to detonate. Monthly candle says only one word: BULLISH. Clear $4,500 and Ethereum goes parabolic.”

This analysis underscores a cautious optimism among market participants as Ether navigates a critical juncture.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Trading cryptocurrencies involves risk, and readers should perform their own due diligence before making financial decisions.