• Ethereum (ETH) has been trading in a narrow range for two weeks, with a breakout above $4,500 or below $4,200 likely determining the next direction.
• The indicators of RSI and MACD demonstrate increasing strength of ETH, which represents the bullish attitude without becoming overbought.
• Whale buying and net inflows indicate an increase in institutional desire, enhancing further positive movement.

Ethereum (ETH) has been trading within a short range for almost two weeks, making most traders frustrated. Analysts have pointed out that to have a breakout that would decide the next price direction. A strong close above the $4,500 or a strong close at the end of June below the $4,200 may represent the next shift. 

Source: X

ETH has had an extremely significant development as indicated by the 4-hour chart. The dropping triangle that was created at the peak of the upswing that was crowned with ETH. The support zone of $4,200 to $4,250 was well-supported and had been supported by more than once by the buyers. Such a price squeeze is an indicator that there would be a breakout soon.

Momentum Builds as Ethereum Targets $4,500 Resistance

The resistance sits around 4,345 near the 20-day Exponential Moving Average (EMA) as ETH nears the upper side of this line. The 50-day EMA stands at 4366 and is a point of immediate resistance. The clearing of these zones would open the second important target on 54,500 somewhere at 4,956. 

Source: TradingView

ETH is also exhibiting strength according to momentum indicators. The Relative Strength Index (RSI) has turned around to regain 55. This is indicative of a sentiment improvement, but without overbought conditions, it could continue growing. A shift of the trend bias has been verified by the Moving Average Convergence Divergence (MACD) that has crossed higher. This also supports the argument that the trend may be increasing.

Also Read: Ethereum Whale Activity and Staking Surge Signal Potential Next Price Rally

Whale Activity and On-Chain Data Drive ETH’s Bullish Sentiment

On-chain data further bolsters the bullish tale. The buying of an ETH amount of $86.8 million to be bought was recently documented. The tokens were shifted into staking contracts, which elucidates rising engagement in yield creation in the Ethereum platform. This significant involvement implies that institutional investors are investing in Ethereum in the long run, especially in the staking ecosystem.

This buy of whales has elicited social sentiment. According to market participants, a high concentration of whales is associated with a precursor of large price fluctuations. This, coupled with technical breakouts, could have been the trigger of a confidence wave among both the retail and institutional investors. This kind of activity could give rise to increasingly directional patterns, and ETH is the key, able to attract market observers.

Additional holders of the bullish view are spot flows. The net inflows of Ethereum on September 9 amounted to $5.87 million. This was a tremendous reversal compared to late August, when ETH recorded consecutive outflows. 

Source: Coinglass

The market swell on a bigger scale comes with the Ether breakout. Bitcoin (BTC) is maintaining at more than $110,000. Meanwhile, improved risk sentiment also gains momentum, with the Federal Reserve rate cut expectation taking the wider market into the wind. The recent movement of Ethereum price goes by the past cycles that had consolidation phases followed by an abrupt growth of the trend.

Ethereum traders observe carefully in anticipation of further, potential price increases. Moving out of the $4,500 would be the second leg of the bull run leading to new heights of the ETH. Unless ETH resumes and goes past the resistance, then a pullback is probable, but the market is highly likely to perform well. 

Also read: Bitcoin (BTC) surged past $113K as Fed rate cut hopes fuel bullish outlook