Ethereum News Today: Ethereum Surpasses $4,000 as Exchange Supply Hits 9-Year Low

Ethereum (ETH) surged past the $4,000 psychological level on August 18, 2025, reaching a high of $4,537.76 after seven prior failed attempts. The breakout was marked by a 29.77% increase in the price during the breakout candle, signaling strong buyer interest and momentum in the market [1]. This price movement coincided with a significant decline in Ethereum’s exchange supply, which has fallen to a nine-year low of 14.88 million ETH. Notably, $2 billion worth of ETH was withdrawn from exchanges in just one week, further reducing short-term selling pressure and suggesting a shift in market sentiment [1].

Analysts have pointed out that the $4,000 level, previously a resistance, has now flipped into support, reinforcing the possibility of continued upward movement. Projections from market observers suggest that Ethereum could potentially rise to $7,000–$11,000, with growing demand and reduced exchange balances supporting a bullish outlook [1]. Mike Novogratz, a well-known analyst in the space, has also suggested that Ethereum could test $5,000–$6,000 by the end of 2025 if the current trend persists [5].

On-chain data remains a key indicator in tracking Ethereum’s price trajectory. The declining exchange supply indicates that holders are moving tokens off exchanges, often a sign of accumulation or reduced short-term selling. This dynamic is historically associated with stronger price performance in the crypto market. Additionally, the rising wedge formation in recent price charts has drawn attention, with analysts closely monitoring whether Ethereum can break out of this pattern sustainably [4].

Despite the positive signals, some analysts remain cautious. Technical indicators such as the MACD have shown sell signals, and Ethereum has at times retraced within a falling channel, raising concerns about short-term volatility [1]. A breakdown below key support levels could trigger a reversal, according to some observers [2]. However, the current price action, including a near approach to $4,500, suggests continued strength, with the market showing resilience against short-term corrections.

Institutional interest in Ethereum appears to be growing, further supporting the potential for extended gains. As the broader market continues to evaluate risk assets, Ethereum’s performance will likely be influenced by both technical patterns and on-chain behavior. Investors are now watching closely for confirmation of sustained demand, particularly as the asset moves beyond key psychological thresholds.

Source: [1] https://en.coinotag.com/ethereum-surpasses-4000-analysts-suggest-potential-for-further-gains-amid-declining-exchange-supply/

[2] https://m.economictimes.com/crypto-news-today-live-18-aug-2025/liveblog/123350562.cms

[3] https://www.binance.bh/en-BH/square/news/editors-pick

[4] https://www.ainvest.com/news/ethereum-news-today-ethereum-nears-4-500-investor-fear-chain-accumulation-rise-2508/

[5] https://www.facebook.com/groups/250968057873111/posts/803507155952529/