$5,000 Ethereum Price Narrative Resurfaces as Big Players Rotate Out of BTC

The Ethereum price has held up stronger than most in the recent sell-off. The token tested $4,300 but quickly bounced back above $4,500, posting weekly gains of 11%. By contrast, Bitcoin slipped 1.6% week-on-week.

Traders are now asking whether Ethereum can push through $5,000, one of the more sought-after price levels. On-chain data points to strong buying pressure, and experts believe the upside narrative is far from over.

Exchange Outflows Highlight Buying Interest

One of the clearest signals is exchange net flows. When more ETH leaves exchanges than enters, it means traders are pulling coins into wallets — usually to hold rather than sell.

On August 26, exchange outflows reached almost 287,000 ETH. This marked the second-highest level since July 31, when over 316,000 ETH exited in a single day. Back then, the move preceded an Ethereum price rally from $3,930 to $4,750 within days.

Kevin Rusher, founder of the Real World Asset platform RAAC, told BeInCrypto that the latest flows underline ETH’s resilience.

“In the past month, ETH is up 17%, while Bitcoin is down 7%. It seems that ETH is in price discovery territory now, despite the short-term decline,” he said.

In addition, BlackRock was recently spotted rotating capital out of Bitcoin and purchasing about $89 million worth of Ethereum, which formed a major chunk of the latest outflows.

This pattern suggests that big players are still buying the dip, even while the broader market shows weakness.

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Taker Buy-Sell Ratio Adds Confirmation

Another metric backing this trend is the taker buy-sell ratio. This measures how aggressive buyers are on exchanges. A reading above 1 means buyers are “lifting offers” — hitting sell orders at the asking price instead of waiting lower.

In short, they are eager to buy whatever is available without haggling or waiting for the price to reach desired levels.

On August 26, the ratio briefly spiked above 1 for the first time since August 20. Previous local peaks above 1, like on August 9 and August 12, were followed by strong Ethereum price rallies.

The latest surge is the highest since mid-August, even as ETH prices dipped. The dip seen post August 26 represents incomplete data at press time and is subject to change.

Moreover, Rusher added that Ethereum’s appeal now goes beyond traders. 

“So far, ETH’s relative performance has been driven by digital asset treasuries, which are betting on Ethereum’s role in DeFi and tokenization. On top of this, unlike Bitcoin, ETH isn’t just about capital appreciation – it allows holders to earn yield from staking the token. It’s a very compelling proposition for old BTC holders and digital asset companies, and could shed some light on why some BTC whales have rotated some $2 billion into ETH over just the last few days – and counting,” Rusher said.

Key Ethereum Price Levels and the Road to $5,000

Despite recent volatility, the Ethereum price still trades close to major resistance at $4,623. Clearing this zone could open the way to $4,749 and then the psychological $5,000 mark. If momentum carries through, analysts are also watching $5,213 as the next technical target.

Rusher believes the bigger picture favors Ethereum. He pointed to staking yield and institutional adoption as long-term drivers. He also noted that whales have rotated billions from Bitcoin into ETH in recent days, adding to the bid.

“Finally, adding a potential Fed interest rate cut opens up retail capital, which will only add to the fiery demand for ETH. Combined, this could soon send sub-$5,000 ETH into history,” Rusher added.

For now, Ethereum’s trajectory depends on whether buyers can keep defending support levels while pushing toward resistance. If history repeats, the latest outflows and taker ratio spike could be the spark for another leg higher.

It is worth mentioning that the bullish Ethereum price trend would only get invalidated if it breaches the $4,066 mark. Any level higher than that could lead to a bounce, primarily led by the capital rotating buyers.