Ethereum Bulls Target $5K Milestone as Liquidity Clears and Demand Soars to Record Highs

Ethereum's charging toward the $5,000 mark—liquidity's clearing out while demand hits unprecedented levels.

Market Mechanics Shift

Traders are watching order books thin out as institutional players stack ETH at a record pace. The $5K target isn't just hopeful thinking—it's becoming a technical inevitability.

Liquidity Evaporation

Massive buy walls are absorbing available supply, creating a classic supply squeeze. When the markets get this thirsty, price explosions follow—just ask anyone who's been through a crypto cycle before.

Record Demand Metrics

Exchange inflows can't keep up with withdrawal rates. Network activity's surging while staking yields remain attractive—a combination that historically precedes major price breakouts.

Wall Street's finally noticing what crypto natives knew years ago—though they'll probably claim they invented it once the SEC approves their ETH ETF applications. The smart money's positioning while traditional finance still debates whether cryptocurrency is 'a real asset class'—as if needing permission to innovate ever built anything worthwhile.

Ethereum Daily Outlook Shows Bullish Setup

Ethereum closed the day with a bullish candle, supported by stronger conditions in ETHBTC. CRYPTOWZRD said,

“$5,000 is the next Daily resistance. Above $5,000 I expect FOMO buying pressure and a rally towards the $5,780 resistance target or higher.”

They added that $4,000 remains the key support on the downside. Intraday moves have been volatile but bullish. A breakout above $4,500 opened the way for targets at $4,765 and higher. CRYPTOWZRD noted that holding above $4,500 is crucial, while slipping under $4,500 or $4,000 could bring back volatility and bearish risk.

Liquidity Cleared and Next Levels to Track

Daan Crypto Trades reported that ethereum has cleared nearby liquidity after moving above $4,500. He said,

$ETH Has now taken out all the liquidity in nearby proximity.

The levels to watch above are $4635 & $4660.

Below we have a lot of marginally higher lows sitting between the $4210-$4275 region.

Short term, it’s important for the bulls to hold on to that ~$4500 area which ETH… https://t.co/2Ky22jhpAj pic.twitter.com/ad0fXWnEPV

— Daan crypto Trades (@DaanCrypto) September 12, 2025

For short-term momentum to hold, ETH must defend the $4,500 breakout. A move back below that level WOULD weaken the breakout and could return the price action to earlier ranges.

Support is visible between $4,210 and $4,275, where several higher lows have formed. This area now represents a key base for buyers if price tests lower levels again.

Institutional Demand Continues to Grow

Ethereum demand has been supported by rising institutional and holder activity. CryptoBusy shared that fund holdings of ETH have reached an all-time high of 6.7 million tokens. The increase accelerated through 2025 as the price moved above $4,000, reflecting stronger inflows from ETFs and structured investment products.

Balances among larger wallets have also grown, reaching 20.6 million ETH across addresses holding between 10,000 and more than 100,000 ETH. CryptoBusy noted,

Ethereum demand hits new highs.

Fund holdings have climbed to an all-time high of 6.7M $ETH, while overall holder balances reached 20.6M $ETH. Institutions and long-term holders are steadily accumulating.

Staking, ETF inflows, and on-chain activity are reinforcing $ETH as both… pic.twitter.com/zNPtEfi29o

— CryptoBusy (@CryptoBusy) September 12, 2025

Ethereum has cleared key liquidity levels and broken out above $4,500. The immediate areas to track are $4,635 and $4,665, while $5,000 remains the next major resistance.

Alongside technical momentum, Ethereum’s growth is reinforced by institutional inflows, staking activity, and long-term accumulation. These structural drivers have positioned Ethereum to sustain upward momentum as it approaches the $5,000 mark.