Ethereum Price Forecast: ETH-USD at $4,331 Eyes $6,000 Breakout

Ethereum (ETH-USD) Price Forecast: ETF Flows, Powell’s Signal and Critical Levels Driving ETH Toward $6,000 and Beyond

Ethereum Price Consolidates After ETF Outflows But Long-Term Bullish Case Remains Intact

Ethereum (ETH-USD) has endured a volatile August, with ETF data showing heavy outflows totaling $678 million across three consecutive days, the largest streak since launch. Despite the pressure, major issuers still hold over 6.3 million ETH, equal to nearly 5% of circulating supply and valued just under $26 billion at today’s prices. At the same time, BlackRock alone unloaded over 59.6 million ETH worth $272 million, adding to selling pressure that briefly pulled ETH to $4,100. Yet even as institutions trim exposure, resilience has shown. On August 21, ETFs attracted $287.6 million in net inflows, led by BlackRock’s ETHA with $233.6 million, signaling capital rotation rather than outright abandonment of Ethereum.

ETH Price Action Around $4,200–$4,700 Is Defining Short-Term Direction

ETH is currently trading around $4,331, climbing 0.6% intraday, but still below its rejection zone at $4,700–$4,800, just shy of the $4,891 all-time high. Technicals show the token consolidating near the 20-day EMA, acting as short-term support at $4,100–$4,200. RSI cooled to 54, retreating from earlier overbought readings, giving ETH space to expand in either direction. On the daily chart, the 0.5 Fibonacci retracement at $4,070 provided a strong bounce, but any breakdown exposes deeper zones between $3,660–$3,900. On the upside, clearing $4,400–$4,500 opens the path toward $5,000 and ultimately $5,500–$6,000 if momentum persists.

Powell’s Jackson Hole Speech Sparks Crypto Rally, ETH Leads Gains

Federal Reserve Chair Jerome Powell confirmed that rate cuts are likely before year-end, sparking a broad rally across risk assets. Bitcoin gained 3.5% to $116,493, while Ethereum surged over 12% to $4,749, outpacing major altcoins such as Solana (+8.4%) and XRP (+6.1%). Lower interest rates weaken the dollar and boost appetite for non-yielding assets like crypto, amplifying Ethereum’s move. ETH’s 24-hour trading volume jumped to $53 billion, representing nearly 10% of total circulating supply turnover, underlining the conviction behind the breakout.

Ethereum ETF Flows Show Divergence Between Short-Term Selling and Long-Term Demand

Flows data reveal a complex picture. From August 15 to August 20, Ethereum ETFs suffered $925.7 million in outflows, driving ETH lower from $4,700 to $4,225. Yet inflows resumed quickly, with $288 million added on August 21. Analysts highlight that short-term price action is liquidity-driven, with liquidation heatmaps showing cluster zones at $4,385–$4,410 (short squeeze target) and $4,160–$4,200 (long liquidation magnet). This suggests ETH will continue gravitating between these ranges until a decisive breakout confirms direction.

On-Chain and Technical Structure: Accumulation Amid Volatility

On-chain activity confirms sharp liquidity hunts. During the push to $4,800–$4,900, a cascade of short liquidations fueled the spike before ETH reversed sharply to $4,100, triggering long liquidations. Currently, ETH trades between $4,200–$4,500, forming an inverted head-and-shoulders pattern on the four-hour chart. A clean break above $4,400 validates this structure, signaling renewed bullish momentum. If bulls falter, the untested $3,800–$3,900 liquidity pocket could act as a downside magnet. Meanwhile, average Ethereum network gas fees remain stable around $20, a marked improvement compared to historical spikes, thanks to the Pectra upgrade. This operational stability supports institutional confidence.

Ethereum Price Forecasts: $6,000 Near-Term, $9,000 Medium-Term, $20,000 Long-Term

Forecasts remain optimistic despite volatility. Analysts see ETH retesting $5,000 before year-end, with $6,000 flagged as the next near-term breakout level. Some remain bolder: a widely circulated forecast projects $9,000 in 2025, while former BitMEX CEO Arthur Hayes even suggested ETH could reach $20,000 in the current cycle, citing its growing share of institutional portfolios. Prediction markets mirror this sentiment — Polymarket traders assign an 88% probability that Ethereum will hit $5,000 in 2025.

Ethereum Ecosystem Ripple Effects: Layer Brett, Chainlink, and PEPE

ETH’s momentum continues to lift other projects. Layer Brett (LBRETT), trading at $0.0044 in presale, markets itself as a Layer 2 meme coin with staking yields up to 3,800% APY and promises of a 30x ROI if ETH reaches $9,000. Chainlink (LINK) climbed to $25 (+3.27%), supported by new partnerships with Visa and Fidelity as Ethereum demand ripples into oracles. Meme coin PEPE bounced from 0.00001002 to 0.00001065 (+3.1%), riding Ethereum-driven liquidity flows. This underscores ETH’s role as the tide lifting altcoins across DeFi, oracles, and meme niches.

Market Sentiment and Risks

Despite optimism, risks remain. Ethereum’s RSI shows bearish divergence on the daily chart, a cautionary signal suggesting weakening momentum even as price approaches highs. Institutional sales, like BlackRock’s $272 million disposal, reinforce near-term volatility. Altcoin season enthusiasm has also cooled sharply — Google Trends data shows searches for “altcoin season” plunging 88% since mid-August, in lockstep with ETH’s retreat from $4,700 to $4,100. Ethereum dominance, however, remains firm at 13.5%, while Bitcoin holds around 58%, leaving room for ETH-led rallies once consolidation resolves.

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