Ethereum Price Tests Range's Upper End Amid Strong Institutional Demand

Ethereum's price has reclaimed the $2,500 area and is now pressing against its recent range's upper end. This development comes as institutional participation through U.S. spot Ethereum ETFs continues to attract significant attention, with over $215 million in weekly inflows reported up to September 4.

The combination of substantial exchange withdrawals and renewed ETF demand has given the recovery a stronger fundamental backdrop. According to recent data, more than 116,000 ETH was withdrawn from centralized platforms within just 48 hours, indicating a significant shift in supply. This movement away from exchanges could reduce readily available sell-side inventory, potentially paving the way for further price appreciation.

The immediate resistance for Ethereum's price sits around $2,550-$2,560, an area where ETH has repeatedly encountered sellers in the past. A decisive daily close above this level would be a crucial development, as it would expose the next major test: the $2,723-$2,822 supply zone highlighted by volume-distribution analysis.

A sustained breakout through this upper supply zone would significantly improve the probability of Ethereum extending toward the $2,800 level. However, failure to clear this zone could leave ETH vulnerable to another range-bound move, particularly if ETF flows weaken or exchange balances begin rising again.