Ethereum Falls Below $4,500 - Is a Prolonged Squeeze for ETH Imminent?
In the cryptocurrency market, Ethereum's [ETH] spot volume has remained subdued, staying below the 500k-1M range - a significant drop from the levels seen in June and July. This trend, coupled with growing caution in the market and a decreasing appetite for leverage positions, has sparked speculation of a possible consolidation for Ethereum.
Indicators pointing towards consolidation include a decline in trading volume during sideways movement, a neutral Relative Strength Index (RSI), stabilising Bollinger Bands, and a sideways phase near important support and resistance zones around $3,800-$4,000 USD. These figures suggest a healthy consolidation following a previous upward trend and a cautious market phase before a potential breakout.
If leverage continues to shrink while spot inflows remain high, Ethereum could remain capped between $4,470 and $4,600 in the near term. This prediction is further supported by four consecutive days of positive Exchange Netflows, indicating higher inflows and aggressive spot selling.
On September 13, 2025, Ethereum attempted to breakout but was rejected at $4,763. Since the rejection, Ethereum's price has declined to $4,469 on September 15, 2025. Without stronger flows, the Ethereum price may face prolonged consolidation.
Over the past two weeks, the Z-Score for Ethereum's Perpetual contracts has fluctuated between 0.0 and -1.0, indicating a decrease in Perpetual trading volume. This decrease in Perpetual trading activity is likely due to an increase in speculators exiting.
Despite the falling Perpetual activity, Ethereum's Funding Rates remain positive for 30 days, with the current rate standing at 0.011, its five-day-high. This anomaly suggests that despite reduced trading activity, there is still a demand for long positions in the Ethereum market.
However, the Ethereum Spot market has been mainly dominated by sellers, with little to no demand. CryptoQuant analyst Arab Chain reported a decline in the imbalance between Spot and Perpetual volume for Ethereum, further supporting the idea of a potential consolidation.
At press time, Ethereum's price is $4,499, reflecting a 0.7% daily decline. Exchange Netflow for Ethereum shows 13.9k inflows, indicating a slight increase in demand. The lack of a strong imbalance between Spot and Perpetual trading suggests potential stagnation in the ETH price.
In conclusion, the current market trends for Ethereum suggest a period of consolidation, with the price potentially remaining between $4,470 and $4,600 in the near term. However, positive Funding Rates indicate that there is still demand for long positions, potentially setting the stage for a breakout in the future.
