- Ethereum shows strong buying signals as exchange outflows rise and institutions like BlackRock shift funds from Bitcoin to ETH.
- Analysts say holding above $4,066 could pave the way toward the $5,000 milestone.
Ethereum is once again stealing the spotlight in the crypto market, showing resilience during recent sell-offs and attracting significant capital inflows. With institutions shifting funds from Bitcoin to Ethereum and key on-chain signals pointing toward bullish buying activity, many traders are asking whether ETH could be heading for the much-anticipated $5,000 milestone.
Exchange Outflows Signal Strong Buying Interest
One of the clearest indicators of growing demand is the large exchange outflows. On August 26, nearly 287,000 ETH left exchanges, the second-highest level since late July. Historically, such moves have preceded rallies as traders typically withdraw coins to hold rather than sell. The last similar outflow led to Ethereum climbing from $3,930 to $4,750 in just a few days.
This pattern suggests whales and long-term investors are positioning themselves for further gains. Kevin Rusher, founder of RAAC, highlighted Ethereum’s resilience, noting its 17% monthly rise compared to Bitcoin’s 7% decline.
Institutional Money Backs Ethereum’s Rise
Adding to this bullish trend, BlackRock and other major players have recently moved capital out of Bitcoin and into Ethereum. BlackRock alone shifted around $89 million, reinforcing confidence in ETH’s long-term potential. Reports also suggest that whales have transferred nearly $2 billion from Bitcoin into Ethereum in recent days, further fueling speculation of a major breakout.
🇺🇸 BLACKROCK JUST BOUGHT $89,200,000 WORTH OF $ETH. pic.twitter.com/6nok247uFI
— Ash Crypto (@Ashcryptoreal) August 26, 2025
Unlike Bitcoin, Ethereum offers additional utility through staking, yield generation, and its central role in decentralized finance (DeFi) and tokenization. This broader appeal makes ETH especially attractive to institutions seeking more than just price appreciation.
Taker Buy-Sell Ratio Confirms Aggressive Buyers
Another bullish signal comes from the taker buy-sell ratio, which measures how aggressively traders are buying. On August 26, the ratio spiked above 1, showing that buyers were willing to pay the asking price rather than wait for discounts. Previous spikes above 1 have often been followed by strong rallies, strengthening the case for ETH’s next leg upward.
Key Levels to Watch on the Road to $5,000
Ethereum is currently testing resistance near $4,623. A breakout above this level could open the path toward $4,749 and eventually the psychological $5,000 barrier. Analysts also point to $5,213 as the next technical target if momentum continues.
For now, the bullish outlook remains intact as long as ETH holds above $4,066. With strong exchange outflows, institutional backing, and aggressive buyers entering the market, Ethereum’s journey to $5,000 looks increasingly achievable.
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