In late August, Ethereum 
$3,094 approached the significant $5,000 mark, reaching an all-time high of $4,955 on August 24. However, the cryptocurrency couldn’t sustain this momentum, staying between $4,209 and $4,797. With recent weak U.S. employment data and the hope of interest rate cuts in September, Ethereum, at the time of writing, was trading at $4,295, having dropped by 3.67% in the last 24 hours.
Direction of Ethereum
As the market anticipates the next significant move, analysts suggest that Ethereum has formed a local peak, making short-term upward momentum unlikely. According to CryptoQuant analyst Maartunn, Ethereum futures continue to feel pressure, with the net buying volume remaining heavily negative as sellers have outpaced buyers by $570 million. This level of aggressive selling is typically observed near local peaks.
Concurrently, Ethereum ETFs are experiencing outflows, with Ethereum spot ETFs seeing the second-largest net outflow on record of $447 million on September 5, reversing a month-long trend of significant inflows. Bitcoin 
$91,081 spot ETFs recorded a total net outflow of $160 million, with none of the 12 ETFs showing net inflow.
Glassnode data indicates that more than 50% of Ethereum ETF inflows coincided with an increase in CME open positions. This suggests that recent TradFi (Traditional Finance) activities are not just directional trades but could also involve a combination of position taking and arbitrage strategies as Ethereum trades below local peaks.
Recent reports highlight an investor from the Ethereum ICO staking 150,000 ETH (valued at $656 million) dormant for eight years. This participant originally purchased 300,000 ETH for $93,300 during the ICO.
Short-Term Expectations
Recent statements point to a potential cooling-off period for Ethereum in the short term. Noteworthy aspects include:
- Whale Activity and Futures: Maartunn’s analysis indicates that prominent players are concentrated on the selling side in the futures market. Historically, this situation suggests difficulty for prices to rise further.
- ETF Outflows: The launch of spot Bitcoin ETFs greatly increased institutional interest in cryptocurrencies. However, net outflows from both Bitcoin and Ethereum ETFs suggest some profit-taking or cautious posturing on the institutional side, temporarily slowing market bullish momentum.
- Arbitrage Strategies: Glassnode data shows some Ethereum movements are not based solely on price expectation but also involve arbitrage strategies exploiting price differences between different markets, indicating a more sophisticated and professional market.
