Ethereum News Today: Institutional Demand Drives ETH's Crucial $4,700 Test

Ethereum (ETH) price has been trading near $4,400, consolidating within an ascending channel that has defined its uptrend since July. The token’s recent volatility indicates weakening momentum, particularly as it failed to hold firmly above the $4,600–$4,700 resistance zone. Institutional flows and whale positioning are now pivotal in determining whether ETH can sustain its bullish trend into September. On the daily chart, key support lies at the channel midline near $4,380 and the 50-day EMA at $4,004. Overhead resistance at $4,700 remains a critical test, as past attempts to break through have failed. The RSI indicator currently sits at 53, suggesting a neutral momentum phase as the asset consolidates before its next directional move [1].

Ethereum’s spot market has experienced net outflows, with $38.1 million recorded on September 1, signaling reduced confidence among larger holders. These outflows are typical during consolidation phases but could hinder a clean breakout in the near term. On shorter timeframes, Ethereum is trading below the supertrend resistance level of $4,590, with the indicator flashing bearish bias. The Parabolic SAR aligns near $4,340 as immediate support, suggesting a potential breakdown below that threshold could expose the $4,200–$4,000 range [1]. This combination of technical resistance and selling pressure has increased volatility, keeping traders cautious despite the broader bullish structure.

Analysts remain divided on Ethereum’s near-term trajectory. Bulls argue that the ascending channel and higher lows remain intact, with $4,380 as a critical pivot point. A successful hold above this level could push ETH back toward the $4,600–$4,700 zone, with a decisive breakout above $4,700 potentially targeting $5,000 and beyond. Conversely, bears highlight repeated failures at $4,700 and negative flows as signs of underlying weakness. A breakdown below $4,380 could trigger further downside toward $4,000 and the 100-day EMA at $3,517. The monthly chart comparison with 2021 also reinforces the likelihood of a strong pullback before a sustained rally [1].

Heading into September 2, Ethereum’s short-term outlook remains balanced. A strong close above $4,500 would improve sentiment and set the stage for another breakout attempt toward $4,700 and $5,000. However, failure to hold above $4,380 risks accelerating losses into the $4,000–$4,100 range, where major moving averages cluster. The price prediction for the next 24–48 hours leans neutral, with spot outflows tempering bullish conviction. Traders are closely watching the $4,380–$4,700 range, a decisive zone for ETH’s next trend [1].

Bitcoin (BTC), meanwhile, has shown mixed signals in recent weeks. After setting a new all-time high above $124,000 in early August, it retraced to the low $110,000s by month-end. The price action was shaped by key macroeconomic events, including the release of July CPI data and Federal Reserve Chair Jerome Powell’s Jackson Hole speech. Institutional participation has remained a key driver, with U.S. spot ETFs recording $3.87 billion in net inflows for ETH compared to a $751 million outflow for BTC [2]. Despite these inflows, Bitcoin has shown signs of consolidation, with analysts suggesting a potential peak in late October or early November. Some experts argue that historical patterns indicate a typical Q3 correction, followed by a rebound into the fourth quarter [3].

September has historically been a weak month for both BTC and ETH, averaging mid-single-digit losses for Bitcoin and similar volatility for Ethereum. This seasonality reinforces a cautious stance among investors, particularly as markets await key economic data releases and the potential for Fed rate cuts [2]. Analysts have noted that Ethereum ETFs have consistently outperformed Bitcoin ETFs in terms of inflows, signaling stronger institutional demand. This trend could continue if Ethereum’s price sustains its consolidation and retests the $4,700 resistance level in the coming weeks [1].

Source:

[1] Ethereum (ETH) Price Prediction and Analysis for September 2, 2025 (https://coinedition.com/ethereum-eth-price-prediction-and-analysis-for-september-2-2025/)

[2] Bitcoin & Ethereum Highs, Altcoins and DeFi Surge (https://alphanode.global/insights/august-2025-bitcoin-market-report/)

[3] Bitcoin Bull Market Ending in 50 Days, Says Analyst (https://cryptopotato.com/bitcoin-bull-market-ending-in-50-days-says-analyst/)