Ethereum has been on a tear recently, surging to multi-year highs around $4,700. This marks its strongest level since November 2021 and puts it within striking distance of its all-time high near $4,860. The momentum behind this rally has the market buzzing with excitement, as Ethereum is on the cusp of entering a price discovery phase that it hasn’t experienced in years. If bulls can push decisively beyond this key resistance level, Ethereum could find itself in uncharted territory, with traders and institutions eagerly piling in to ride the wave of momentum.
One of the key factors fueling this bullish scenario is the data from CryptoQuant, which shows Ethereum’s 30-day Simple Moving Average (SMA30) for exchange netflows at -40,000 ETH. This negative reading indicates that, on average, 40,000 ETH per day have been withdrawn from exchanges over the past month. This trend suggests a strong buying pressure in the market, as the tokens being moved off exchanges are likely being held in private wallets or utilized in staking and DeFi protocols, reducing the immediate sell-side supply.
The combination of a tight supply, strong on-chain accumulation, and technical strength near all-time highs has set the stage for a potential breakout. The coming sessions will be crucial in determining whether Ethereum solidifies its position as the market leader in this cycle or if it will face a period of consolidation before making its move into price discovery.
Top analyst Burak Kesmeci highlights the significant accumulation trend in Ethereum, with 1.2 million ETH withdrawn from exchanges in just one month. This sustained trend of outflows is a positive sign for the market, indicating strong conviction among holders. The Ethereum All Exchanges Netflow metric, which tracks the balance of inflows and outflows across all exchanges, has been firmly in negative territory, with the SMA30 standing at -40,000 ETH as of August 12, 2025. As long as this trend continues, Ethereum’s uptrend is likely to persist, with room for further upside potential in the short term.
On the price action front, Ethereum is currently trading at $4,691, posting a 10.34% gain on the weekly chart. This rally has brought ETH to its highest level since November 2021, nearing its all-time high near $4,860. Technical indicators show Ethereum well above its 50-week SMA, 100-week SMA, and 200-week SMA, confirming a strong long-term uptrend. If bulls can maintain momentum and break through the $4,860 resistance level, Ethereum could enter price discovery for the first time in nearly four years, potentially sparking a surge in buying activity.
However, it’s important to note that the $4,700-$4,860 range is a historically significant resistance zone, and profit-taking could lead to short-term pullbacks. Overall, the market sentiment around Ethereum is overwhelmingly positive, with the potential for further gains on the horizon.
In conclusion, Ethereum’s recent surge to multi-year highs has the market buzzing with excitement as it approaches its all-time high. With strong on-chain accumulation, tight supply, and technical strength, Ethereum is well-positioned for a potential breakout into uncharted territory. Traders and institutions are eagerly watching to see if bulls can maintain momentum and push beyond key resistance levels, paving the way for a new phase of price discovery for Ethereum.