Ethereum Pullback Signals Short-Term Top After $4,955 Rally
Ethereum price pulled back to around $4,295 on Sept. 5 after reaching an intraday high of $4,955 on Aug. 24. This retracement coincided with significant futures sell-offs, where taker volume skewed $570 million toward sellers, and spot Ethereum ETFs recorded a net outflow of $447 million—the second-largest single-day withdrawal. On-chain data from CryptoQuant and Glassnode show rising CME open interest alongside heavy taker sell volume, indicators historically associated with local tops. Market reaction to weaker US job growth and shifting TradFi positioning added further pressure on short-term upside momentum. Analysts advise traders to monitor futures taker volume, ETF flow reports, CME open interest and key support levels near $4,200–$4,300 to gauge whether this represents a temporary pullback or a more sustained top. These metrics help assess Ethereum price momentum and inform decisions on ETH exposure.
Bearish
The report is bearish because concentrated futures selling and large spot ETF outflows typically signal distribution phases and local tops, leading to short-term price weakness. Similar patterns emerged during prior pullbacks when heavy taker sell volume and ETF redemptions coincided with declining momentum, prompting further declines before stabilization. Traders often reduce exposure in such environments, awaiting confirmation of renewed buying pressure. If futures open interest keeps rising amid continued outflows, it may indicate arbitrage rather than bullish commitment, reinforcing a cautious stance. In both the short and medium term, Ethereum could test lower support levels around $4,200–$4,300 before establishing a base for the next rally.