Ethereum has been steadily rising since the beginning of this month, showing strength as market momentum builds. At the time of writing, ETH is trading near $4,477, approaching the $4,500 resistance level.
Although it has not broken through this resistance level, investor sentiment suggests that the altcoin king may be preparing to run towards $5,000.
Ethereum Investors Expecting Bullish Market
Ethereum's sentiment index is currently below 2.00, which historically indicates high levels of fear, uncertainty, and doubt among retail investors. When traders lean heavily into FUD, prices often move in the opposite direction, surprising skeptics. This pattern has been repeatedly proven as a contrary indicator.
For context, Ethereum experienced extreme greed on June 16, 2025, and July 30, 2025. In both cases, excessive optimism led to selling pressure, triggering price corrections. In contrast, today's atmosphere of distrust and caution is occurring while ETH continues to set higher prices, suggesting that sentiment-driven skepticism may ironically fuel a rally.
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On-chain data highlights key trends supporting Ethereum's macro outlook. Exchange balances have dropped to a 9-year low of 14.88 million ETH, indicating that investors are moving their holdings to long-term storage.
Accumulation is modest but reinforces confidence. Approximately 470,000 ETH, worth $211 million, was purchased last week. While the pace is not aggressive, steady inflows emphasize investor conviction. With supply decreasing and demand maintained, Ethereum's bullish momentum could continue, especially if broader market sentiment turns favorable.
ETH Price Needs Support Level Recovery
ETH is currently priced at $4,477, positioned just below the $4,500 resistance level. Broader indicators, including decreasing exchange balances and contrary sentiment signals, suggest a favorable environment for a breakout. These conditions collectively support a bullish case for Ethereum in the short term.
If Ethereum recovers $4,500 as a support level, the uptrend could accelerate. This move would open the path to breaking the next resistance at $4,749 and testing the $5,000 mark.
However, risks remain if investor sentiment suddenly changes. If holders decide to take profits, ETH could drop to $4,200 or even $4,000. Such a decline would weaken the bullish argument and potentially open the door to a correction instead of continuing the current uptrend.
