Ethereum News Today: Ethereum Struggles Near $4,500 as On-Chain Metrics Signal Long-Term Accumulation

Ethereum (ETH) is currently trading near $4,477, just below the critical $4,500 resistance level following a recent pullback from the $4,750 zone [1]. The price has retreated below several key support levels, including the $4,550 area and the 61.8% Fibonacci retracement of the recent upward move [1]. On-chain data shows that Ethereum exchange balances have fallen to a 9-year low of 14.88 million ETH, suggesting that investors are increasingly holding the asset off-exchange for long-term accumulation [1].

Over the past week, investors have added approximately 470,000 ETH, valued at around $211 million, to their holdings, indicating continued demand despite the recent price decline [1]. However, the Ethereum Fear & Greed Index remains below 2.00, a historically bearish reading that reflects uncertainty and fear among retail traders [1]. This kind of sentiment has often acted as a contrarian indicator, sometimes preceding price reversals [1]. Similar corrections have been observed in recent months, including on June 16 and July 30, 2025, during periods of extreme bullishness [1].

Technical analysis suggests that Ethereum may face further downward pressure if it fails to reclaim the $4,500 level. A breakdown below $4,200 could push the price toward $4,180 or even $4,050 [1]. On the other hand, a successful recovery above $4,500 could pave the way for a test of the $4,749 level and eventually the $5,000 mark [1]. Analyst Harsh Notariya has highlighted that this level is crucial for validating the ongoing bullish trend [1]. The current bearish momentum is also reflected in the ETH/USD hourly MACD and RSI, both of which indicate a short-term downward bias [1].

Market observers are also tracking broader macroeconomic factors, including inflation trends and central bank policies, which continue to influence investor behavior in the cryptocurrency space [4]. Meanwhile, Ethereum's role as a foundational asset in the DeFi sector has seen renewed interest, with total value locked (TVL) rebounding in recent weeks [2]. Institutional support is also evident, with Ethereum and Bitcoin ETFs collectively recording $40 billion in inflows over the past seven days [5].

Despite short-term volatility, such as the price dip below $4,500 following the $103 million loss reported by SharpLink Gaming, the broader market structure remains intact [6]. Bulls continue to defend the $4,000 level, maintaining a long-term bullish stance [8]. As Ethereum approaches a potential breakout or breakdown, traders and investors will be watching closely to see whether the current rally will gain lasting momentum or if a period of consolidation is ahead [1].

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)

[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)

[6] Ethereum Price Drops: Is Sharplink to Blame? (https://www.bitrue.com/blog/ethereum-price-drops-sharplink-losses)

[8] ETH Bulls hold $4K, Ethereum shows Exhaustion (https://www.fxleaders.com/news/2025/08/18/eth-bulls-hold-4k-ethereum-shows-exhaustion/)