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Ethereum Reaches $4,350 in Liquidity Pool: Will Demand Last?

Ethereum secures funding at $4,350 following a steep decline. Amid robust foundations, investors are discussing whether ETH will surge or revisit the $4,000 threshold.

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Ethereum Reaches $4,350 in Liquidity Pool: Will Demand Sustain?
Ethereum Reaches $4,350 in Liquidity Pool: Will Demand Sustain?

Ethereum Reaches $4,350 in Liquidity Pool: Will Demand Last?

In the ever-evolving world of cryptocurrencies, Ethereum (ETH) continues to capture the attention of analysts and investors alike. Currently trading around $4,700 to $4,800, the second-largest digital asset by market capitalisation shows strong momentum, with technical indicators like exponential moving averages (EMAs) acting as strong support levels.

The 20 EMA currently stands at $4,487, the 50 EMA at $4,398, and the 100 EMA at $4,276. This support suggests continued upward potential, reflecting Ethereum's strong bullish momentum and well-supported higher trend structure.

Institutional Investment Boosts Confidence

Institutional investment has been significant, with spot ETFs seeing large inflows totaling over $287 million in a couple of days in August 2025. This influx reinforces market confidence and liquidity, further bolstering Ethereum's bullish outlook.

Expert Forecasts Point to a Bullish Medium-Term Outlook

Analyst Benjamin Cowen anticipates a rally throughout 2025 but notes a potentially important correction in September, indicating some short-term volatility. Arthur Hayes, co-founder of BitMEX, made a bold forecast of Ethereum reaching $20,000 in this cycle, emphasising strong chart momentum and renewed buying activity.

Some models and AI-driven analyses estimate a roughly 29% probability of ETH hitting $6,000 or more in 2025, with a 75% chance of revisiting the previous all-time high (~$4,700).

Potential Challenges and Opportunities

Despite some ETF outflows recently (~$678 million net outflows reported), experts attribute these to profit-taking rather than a fundamental weakening. The remaining institutional holdings still represent about 5% of circulating ETH supply valued near $26 billion, implying strong underlying demand.

From a trading perspective, a resistance zone between $4,950 and $5,000 is viewed as a critical sell zone where price corrections could occur due to clustered sell orders. Investors are advised to consider exit strategies within this range to protect gains.

Traders are also keeping an eye on the $3,900-$4,000 zone as a potential major demand area if Ethereum experiences a deeper pullback. A failure to hold the $4,350 level could result in a price retest of deeper supports near $4,000, prolonging consolidation before any further breakout.

Long-term Perspective

Long-term investors may interpret the current retracement as a reset of overextended conditions, potentially preparing Ethereum for another leg higher. Top analyst Ted Pillows has highlighted the $4,350 zone as a critical level where major liquidity was taken in Ethereum.

The correction in Ethereum's price has sparked debates among analysts about its next move. Some market watchers have warned that Ethereum could face a deeper pullback if the $4,200 level fails to hold as support. However, many analysts, including Ted Pillows, believe that Ethereum is on a clear path to set new all-time highs above $5,000 once the current volatility settles.

The potential new high for Ethereum could be above $4,900, according to bullish voices. Regulatory clarity in the US has improved, easing concerns for large-scale investors and legitimizing Ethereum as a core asset. Historically, when Ethereum trades significantly above these averages, corrections tend to be part of a healthy consolidation before resuming upward movement.

Analysts argue that demand from institutional flows, strong ETH ETF inflows, and continued whale accumulation could contribute to Ethereum's potential move higher. Supply on exchanges is declining, indicating strong accumulation and reduced selling pressure. Institutional adoption of Ethereum is rising, with ETFs attracting record inflows and major companies adding ETH to their treasury strategies.

In summary, the combination of technical support, institutional inflows, ongoing network adoption, and optimistic expert forecasts point to a bullish medium-term outlook for Ethereum, although some volatility and profit-taking corrections remain possible in the short term.

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