ETH Heads to $5.5K? Illiquid Supply and Whale Demand Fuel Rally

- ETH could touch $5,500 as whales amass 411,000 ETH in August. - Futures market and 70% of ETH staked signal bullish groundwork. On September 3, 2025, Cointelegraph reported that ETH could potentially rally to $5,500. This bullish projection stems from several key factors: high staking levels have created structural shortages, Ether whales continue to accumulate the asset, and futures market metrics remain strong. Over 70% of ETH’s circulating supply is currently staked in protocols, significantly limiting its availability for active trading. This immobile supply has created an environment of reduced liquidity and increased scarcity, which supports upward price movement. In August, inflows into spot ETH ETFs and a surge in market momentum pushed ETH to an all-time high of $4,950. Despite this price increase, a large portion of ETH remains locked in staking contracts or held by long-term investors. During the same month, Ether whales acquired over 411,000 ETH, indicating consistent demand. While larger "mega whales" paused their activity, mid-tier whales continued to accumulate the asset, adding to its scarcity. The ETH futures market has also demonstrated strength in the face of price fluctuations. Open interest in Binance’s ETH futures remained robust at over $8.4 billion, even as ETH briefly dropped below $4,300. This resilience indicates stable buyer support and suggests that traders anticipate further price recovery. The stable open interest has helped absorb selling pressure, pointing toward ongoing market confidence. Additionally, withdrawals from major exchanges such as Binance and Kraken remain elevated. Daily outflows regularly surpass 120,000 ETH, which reduces exchange reserves and further constrains liquidity. This trend minimizes the risk of sharp sell-offs and supports gradual or bullish price movements in the near term. In its report, Cointelegraph projected that ETH could move sideways or slightly higher in September, with a breakout to $5,200–$5,500 possible if the price breaches resistance levels. According to CoinMarketCap, as of 21:13 UTC on September 3, Ethereum (ETH) was trading at $4,466.36, and its 24-hour trading volume had increased by 3.40%.