- Ethereum breaks key trendline resistance as RSI signals strength, setting the stage for a potential move toward the $5,000 mark.
- Whales boost Ethereum holdings by 14%, with price outperforming Bitcoin as institutional demand fuels fresh momentum.
- ETH ETF inflows outdo Bitcoin, pointing to a strong ecosystem confidence and capital rotation.
Ethereum (ETH) is trading at $4,403.93 after breaking above a crucial trendline.RSI signals strength and whale wallets grow fatter, traders are eyeing a potential rally. If momentum holds, ETH could be gearing up for a breakout toward the $5,000 mark.
RSI Breakout Pattern Suggests Ongoing Uptrend
ETH has once again broken above a descending trendline around $4,374.83, similar to what happened during its last two rallies. Each time, a bullish divergence on the Relative Strength Index (RSI) appeared ahead of the breakout, indicating that momentum was building.
The RSI has broken above its own descending trendline, hinting that momentum is gaining strength. Ethereum is holding slightly above the recently broken resistance.If momentum maintains it could potentially push toward the $4,800–$5,000 range.
Ethereum Consolidates as Market Pauses
Despite the bullish chart structure, Ethereum’s price is consolidating near the $4,400 level. On Binance’s ETH chart, price action is stuck between $4,200 and $4,600. The MACD has crossed bullishly, but a narrow histogram indicates limited momentum.
RSI is now at 50.68, suggesting the market is undecided. With volume dropping and no clear trend, traders may be waiting for a stronger signal. Ethereum’s market cap has moved between $520 billion and $540 billion this week. A break beyond either level could provide direction.
Institutional Demand and Whale Activity Support Price
Whales have increased their ETH holdings by 14% over the last five months. During this time, ETH gained 132%, beating Bitcoin’s 34% return. Analysts say this reflects portfolio shifts and interest in Ethereum’s growing ecosystem.
Ethereum ETF inflows have also been strong, reaching $3.87 billion in August. This far exceeds Bitcoin’s numbers. While short-term outflows and global uncertainty remain, institutional demand for Ethereum continues to grow, supporting its bullish structure.
