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Ethereum’s price has entered a period of short-term volatility, dipping below key resistance levels despite strong accumulation by major holders. As of early September 2025, ETH is trading around $4,400, down from its recent high of $4,900 in August. Yet behind the scenes, on-chain data reveals a bullish undercurrent: whales are buying, exchange reserves are shrinking, and institutional demand remains strong.
Large Ethereum wallets—those holding between 1,000 and 10,000 ETH—have resumed accumulation after weeks of selling pressure. In August alone, these wallets added over 411,000 ETH, reversing a trend of outflows and signaling renewed confidence in Ethereum’s long-term value. This accumulation coincides with a broader supply squeeze, as centralized exchanges report their lowest ETH reserves in three years.
Spot Ethereum ETFs have also played a major role in draining supply. Since their launch in mid-2024, these funds have attracted more than $13 billion in net inflows, with BlackRock’s iShares Ethereum ETF leading the pack. Corporate treasuries are joining the movement, with at least 17 publicly traded companies now holding ETH on their balance sheets. This institutional adoption is helping to stabilize demand even as retail sentiment fluctuates.
Despite these bullish fundamentals, Ethereum’s price has struggled to break above the $4,800 resistance level. Analysts point to rising Binance reserves as a cautionary signal, suggesting that some holders may be preparing to sell into strength. Technical indicators show consolidation between $4,300 and $4,750, with momentum cooling from overbought levels earlier in August.
Still, many believe the dip is temporary. Ethereum’s market structure remains intact, supported by ascending trend lines and strong moving averages. A clean break above $4,800 could trigger a rally toward $5,200 or even $5,500, especially if exchange inflows slow and withdrawals resume. On-chain metrics continue to favor the bulls, with illiquid supply rising and staking participation at record highs.
The contrast with Bitcoin is also notable. While BTC-linked ETFs have seen outflows, Ethereum’s ecosystem is expanding through staking, Layer-2 adoption, and smart contract innovation. This divergence may allow ETH to outperform BTC in the short term, especially if macroeconomic conditions remain favorable.
As September unfolds, Ethereum’s price action will likely hinge on whether whales continue to accumulate and whether resistance levels can be decisively broken. For now, the fundamentals suggest strength beneath the surface—even if the charts show hesitation.