Ethereum, also called Ether or ETH, is trading in a tight range between $4,200 and $4,500. Traders and investors are watching these levels closely. At the $4,300 to $4,400 zone, about 1.7 million ETH, worth around $7.5 billion, has been bought and moved into what are known as accumulation addresses. These are wallets where coins are held rather than traded. This shows strong support around $4,300, since many investors set their cost basis at this level. If the price drops lower, this support zone could keep ETH from falling too far.
Data from CryptoQuant shows that large outflows of ETH have come from centralized exchanges, with Binance handling the biggest share. This means investors are moving coins off exchanges to hold them long-term. Those who deposited ETH onto Binance had a much lower average cost basis of about $3,150. This shows the difference between long-term holders and active traders. Long-term holders want to store ETH safely, while traders are looking for shorter price swings. The balance between these groups adds pressure to the current trading range.
Institutional demand is also playing a big role. Open interest on CME, which is a major futures exchange, has reached an all-time high. Most of this demand is in contracts that expire in one to three months. This shows that institutions are betting heavily on Ethereum in the near term. Contracts with longer maturities, three to six months, are also increasing. That points to growing confidence in Ethereum’s future. However, heavy trading in short-term maturities can create volatility when contracts expire.
ETH is trading near $4,420, but it has not shown clear momentum. The lack of strong buying pressure signals concern about short-term weakness. Analysts warn that dips to $4,000 are possible if liquidity dries up. On the other hand, if ETH breaks above $4,500, momentum could shift quickly and trigger a strong rally. Many traders see $4,500 as a key resistance level. Clearing this resistance may open the door for ETH to reach $6,800, which some analysts believe is possible by the end of the year.
Crypto trader Merlijn pointed to a technical indicator known as MACD, which recently turned green on the monthly chart. This is often seen as a bullish signal. The trader believes years of built-up pressure could now be ready to break out. A bullish MACD combined with strong institutional flows on CME and heavy accumulation around $4,300 gives reasons for optimism, even though risks remain.
Ethereum is not moving in isolation. Other crypto assets such as Bitcoin and Solana have made higher highs while ETH has been stuck in its range. This suggests that short-term capital has rotated into other coins. Still, if ETH clears $4,500, it could regain investor attention. The interplay between Bitcoin, Solana, and Ethereum often shapes the wider crypto market. Many investors view Ethereum as the backbone for decentralized applications, which gives it long-term value beyond price movements.
The $4,000 to $4,100 range is another important zone. Analysts call this an order block or demand zone, where buyers previously stepped in. If ETH falls into this range, it could bounce back, but if it fails, the next move could be deeper. Traders watch these levels carefully to plan entries and exits. These areas of support and resistance help define the path forward.
Ethereum continues to face high volatility. Institutional demand, exchange outflows, and on-chain accumulation data are giving mixed signals. While traders look for quick profits, long-term holders and institutions see Ethereum as an asset worth keeping. Whether ETH breaks higher toward $6,800 or dips to test $4,000 depends on how these groups act in the coming months. For now, the $4,200 to $4,500 range holds the key. Investors who understand support and resistance zones, CME open interest, and the difference between long-term accumulation and short-term trading will be best prepared for Ethereum’s next move.
