Ethereum Dominates Trading Volume Despite Market Cool-Off – Details

[Ben Graham]

Ethereum is currently trading at a critical price level after several days of tight consolidation. Just two weeks ago, ETH reached a new all-time high, marking a local top that could signal a pause in its strong rally. Since then, price action has narrowed into a range, reflecting both profit-taking and caution from traders. Still, the underlying fundamentals remain supportive of Ethereum’s long-term outlook.

Whale accumulation continues to play a vital role, as large investors steadily add ETH to their holdings, signaling confidence in further upside. In addition, supply on exchanges has been trending lower, reducing immediate selling pressure and creating a favorable setup for a renewed push higher. These dynamics suggest that ETH remains well-positioned for another move into price discovery once consolidation resolves.

Top analyst Maartunn shared data highlighting that Ethereum still leads in trading volume compared to Bitcoin and other altcoins, despite recent volatility. This reflects ETH’s growing dominance in market activity and investor interest, reinforcing its role as a leading asset in the current cycle. While short-term risks of correction remain, the strong fundamentals and trading activity could pave the way for Ethereum’s next leg higher once momentum returns.

Ethereum Momentum Cools: Market Enters Cautious Phase

According to Maartunn, Ethereum continues to dominate the crypto market in terms of trading volume, but activity has noticeably cooled off in recent sessions. Volume as a percentage of overall market activity has declined from recent highs, signaling a slowdown in momentum. This shift suggests that the euphoric state many ETH investors experienced during the rally to new all-time highs is fading, giving way to a more cautious environment.

After weeks of aggressive buying and accumulation, many participants are now either securing profits or cutting smaller losses at current levels. This profit-taking phase is typical after a strong upward move, especially when Ethereum has been testing key levels without breaking higher. As a result, the market has shifted into a consolidative state, marked by reduced enthusiasm and a more measured approach from traders and institutions alike.

Despite this cooling trend, optimism for Ethereum remains intact. Many analysts believe September could be a slow month for ETH, with sideways price action dominating, yet the possibility of a surprise rally cannot be dismissed. Strong fundamentals, such as declining exchange reserves and steady whale accumulation, still support Ethereum’s long-term bullish case. If demand picks up again, the recent cooldown may prove to be nothing more than a healthy reset before Ethereum makes another attempt at price discovery.

This cautious but hopeful outlook highlights the delicate balance in Ethereum’s current market structure—where the fading excitement of euphoric highs is countered by resilient fundamentals and the potential for renewed strength once momentum returns.

Consolidation Tightens Around Key Level

Ethereum (ETH) is trading around $4,314, continuing its consolidation phase after failing to reclaim the $4,500 resistance in recent sessions. The chart shows ETH forming a tight range above $4,250, with volatility narrowing as both bulls and bears wait for a decisive breakout.

The 50-day moving average sits above current price action, acting as resistance and reinforcing the difficulty ETH faces in mounting a recovery. Meanwhile, the 100-day moving average has flattened near $4,375, aligning closely with the consolidation zone and signaling indecision in the short term. On the downside, the 200-day moving average around $3,850 provides strong support, suggesting that even if ETH breaks lower, the broader uptrend remains intact.

This aligns with Maartunn’s observation that while Ethereum continues to dominate trading volume across the crypto market, activity has cooled compared to previous highs. The reduced participation reflects a cautious environment where many investors are locking in profits or waiting for clearer signals.

A decisive move above $4,500 could reignite bullish momentum, while losing the $4,200 level risks opening a path toward deeper correction targets near $3,900. For now, ETH remains range-bound, awaiting a catalyst.

Featured image from Dall-E, chart from TradingView