ETH aims for $5K as exchange supply hits a 9-year low.

Ethereum (ETH) has shown stable growth since the beginning of the month, gaining strong momentum as market dynamics gradually rise. At the time of writing, this altcoin is trading around 4,527 dollars.

Investor sentiment indicates that the price may be preparing for a rise to the $5,000 mark.

Investor ETH optimistic

The current ETH sentiment index is below 2 – a level that previously often indicated high fear, instability, and doubt among retail investors. When traders are heavily influenced by FUD (fear, instability, doubt), prices often move in the opposite direction, surprising the skeptics. This pattern has repeatedly proven to be a contrarian indicator.

To clarify, ETH faced extreme greed from traders on June 16, 2025, and once again on July 30, 2025. Both instances led to price corrections, as overly optimistic sentiment created selling pressure. In contrast, the current context of doubt and caution is occurring while ETH continues to reach higher peaks, suggesting that skepticism may be fueling the rise.

Investor sentiment for ETH | Source: SantimentOn-chain data shows that an important trend is supporting the macro outlook for ETH. The balance on exchanges has dropped to the lowest level in 9 years, at 14.88 million ETH, indicating that investors are moving assets to long-term storage.

Accumulation activity, even at a modest level, reinforces market confidence. In the past week, about 470,000 ETH ( worth 211 million dollars ) has been purchased. Although the pace is not too strong, the steady flow of capital emphasizes investor confidence. As supply continues to shrink while demand remains, the price momentum of Ethereum may continue, especially if overall market sentiment turns positive.

ETH balance on the exchange | Source: Glassnode## ETH price needs to reclaim the support zone

Currently, ETH is trading at $4,527. Overall indicators, including the decrease in ETH balances on exchanges and contrary sentiment signals, are suggesting a favorable environment for a breakout scenario. These factors combined strengthen the bullish argument for Ethereum in the short term.

If Ethereum confirms the $4,500 level as a support zone, the upward trend could be accelerated. This momentum will help the price surpass the next resistance level at $4,749, paving the way to test the $5,000 mark.

ETH price chart | Source: TradingViewHowever, risks still exist if investor sentiment changes suddenly. If holders decide to take profits, the price of ETH could slide back to the $4,200 range or even $4,000. Such a decline would weaken the bullish argument, opening up the possibility of entering a consolidation phase instead of continuing the current upward trend.

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