Ethereum Eyes $5,500 Amid Illiquid Supply Crunch And ETF Momentum

Following a rejection at $4,946 on August 24, Ethereum (ETH) is now trading in the low $4,000 level. However, some analysts are still hopeful that ETH is likely to surge beyond $5,000 in the coming weeks, thanks to its rising illiquid supply and positive exchange-traded fund (ETF) ￰0￱ To Hit $5,500 In September? According to a CryptoQuant Quicktake post by contributor Arab Chain, Ethereum’s latest upswing in August which pushed the digital asset from a range of $3,700 – $4,000 to its latest all-time high (ATH) of $4,946, was largely buoyed by broader market rally and positive ETF ￰1￱ Reading: Ethereum’s Latest Rally Fueled By Large-Scale Binance Orders, Analyst Says The analyst noted that ETH reserves on Binance crypto exchange witnessed a sharp uptick in ￰2￱ quick surge in inflow of tokens to the exchange shows that holders are choosing to sell or take profits at higher ￰3￱ Chain shared the following chart which shows both liquid (green) and illiquid (beige) ETH ￰4￱ to the chart, the vast majority of ETH supply remains illiquid, creating a structural supply ￰5￱ the other hand, the chart shows a slight increase in the liquid supply, suggesting that a portion of ETH has returned to circulation and could add to short-term selling ￰6￱ analyst remarked: The overall illiquidity of the supply reinforces the long-term bullish outlook.

Short-term cautionary signals – rising Binance reserves combined with a small increase in liquid supply – suggest a potential correction after the recent strong ￰7￱ the growth in ETH reserves on Binance shows signs of slowing down or withdrawals resume, the digital asset’s supply shortage will remain pronounced. Consequently, a clear and decisive break above the $4,800 resistance level could propel ETH toward $5,200 – $5,500 in the near ￰8￱ CryptoQuant analyst concluded by saying that September is likely to witness sideways to a slightly bullish move for ETH between $4,300 to $5,000. However, a failure to break through the $4,800 level – coupled with rising exchange reserves – could raise the possibility of a correction to $4,200.

What’s In Store For ETH? While a breakout above $4,800 is possible, some analysts are tempering their expectations by saying that ETH may test the psychologically important $4,000 level before resuming its ￰9￱ Reading: Whales Load Up On Ethereum, But Analysts Fear $4K Dip Ahead Meanwhile, on-chain data shows whales accumulating ETH at record ￰10￱ to a recent report, ETH whales added a whopping 260,000 ETH to their wallets on September ￰11￱ a more ambitious prediction, Ethereum co-founder and ConsenSys CEO Joseph Lubin recently said that “ETH will likely 100x from here.” At press time, ETH trades at $4,429, up 2% in the past 24 ￰12￱ image from Unsplash, charts from CryptoQuant and ￰13￱