Ethereum News Today: Ethereum Approaches $4,500 Resistance Amid Surging DeFi Confidence and ETF Inflows

Ethereum has continued its upward trend since early August, with the price hovering around $4,477, nearing the key $4,500 resistance level. The second-largest cryptocurrency by market capitalization has drawn increased investor attention amid favorable market dynamics and signs of long-term positioning [1]. Exchange-held balances have dropped to a nine-year low of 14.88 million ETH, suggesting that holders are locking in assets rather than selling off, which could act as a tailwind for future price movements [1].

Despite the bullish technical setup, investor sentiment remains cautiously optimistic. The Ethereum Fear and Greed Index currently reads below 2.00, a level traditionally associated with fear and uncertainty [1]. Historical trends suggest that such conditions often result in price movements contrary to expectations, adding an element of unpredictability to the current phase. Analysts have noted similar market corrections in the past, such as on June 16 and July 30, 2025, which occurred during periods of heightened exuberance [1].

According to Harsh Notariya, a noted analyst, reclaiming the $4,500 level as support could be a turning point for Ethereum's upward trend [1]. If successful, the price could rise further to $4,749, with $5,000 as a potential next target. However, the market remains sensitive to profit-taking, and a pullback could bring the price down to $4,200 or even $4,000, signaling a potential period of stabilization or correction [1].

The broader crypto market has also seen renewed interest, particularly in the decentralized finance (DeFi) sector, where total value locked (TVL) has rebounded, indicating growing confidence in Ethereum-based protocols [2]. Institutional involvement and a favorable macroeconomic environment have also contributed to the upward momentum. The recent success of Bitcoin and Ethereum ETFs, which recorded combined inflows of $40 billion in a single week, has further reinforced the bullish sentiment [5].

While Ethereum’s price remains just below its historical high of $4,800, a breakout above this level would be seen as confirmation of a renewed long-term uptrend [2]. Traders and analysts are closely watching this threshold, as well as the $4,500 level, to gauge the strength of the current rally. The market remains attentive to broader economic factors, including inflation and central bank policies, which could influence future price movements [4].

As Ethereum inches closer to its key resistance level, the coming days will be critical in determining whether the current bullish momentum can be sustained or if a period of consolidation is on the horizon.

Source:

[1] Ethereum nears record highs as DeFi TVL surges (https://www.mitrade.com/insights/news/live-news/article-3-1045481-20250816)

[2] Ethereum Price News (https://cointelegraph.com/tags/ethereum-price)

[3] Ethereum Fear and Greed Index | Multiple Timeframes (https://cfgi.io/ethereum-fear-greed-index/)

[4] Crypto Market Faces Major Sell-Off Amid High Inflation Data (https://thearabianpost.com/crypto-market-faces-major-sell-off-amid-high-inflation-data/)

[5] Bitcoin and Ether ETFs Gain $40B in Volume in One Week ... (https://www.mitrade.com/insights/news/live-news/article-3-1045367-20250816)