Ethereum price surged to an all-time high of $4,950 in August before retreating below $4,300. Experts believe that supply constraints and futures market dynamics could lead to further growth.
Supply Constraints and Long-Term Projections
More than 70% of Ethereum's supply remains staked or illiquid, creating structural scarcity that supports bullish price targets. CryptoQuant data shows Binance's ETH reserves sharply increased in August. Daily withdrawals from major exchanges exceed 120,000 ETH, reinforcing the illiquid supply narrative.
Whale Activity
Accumulation patterns among large ETH holders show shifting dynamics. Glassnode data indicates that mega whales holding more than 10,000 ETH drove the rally in August, with net inflows peaking above 2.2 million ETH. However, this accumulation has now stalled, while large holders with 1,000 to 10,000 ETH have resumed buying, adding over 411,000 ETH.
Futures Market Signals
Despite Ether sliding below $4,300, Binance's open interest remains above $8.4 billion. This suggests traders are maintaining positions, either positioned for a rebound or comfortable with further downside risk. The pace of position unwinding is slowing, indicating a stable market outlook.
Overall, supply constraints and stability in the futures market point toward potential upside for Ethereum despite recent price volatility. Expectations of a rise to $5,500 are strengthening.
