Ethereum Momentum Is Fading, Crash Below $4,355 Likely?

Ethereum momentum is slowing, with Matrixport issuing a warning of a likely fall below $4,355.

In line with the outlook, CryptoQuant reported that almost $1 billion worth of Ethereum was withdrawn from Binance.

Dan Tapiero also listed nine factors that could shape the next phase of the altcoin market with Ethereum set to benefit more.

Matrixport Warns of Fading Momentum

Matrixport explained that the Ethereum price had stayed in an uptrend through most of August.

The coin held its strength by bouncing off its 21-day moving average, which stood near $4,355.

That pattern had worked well in early and mid-August when buyers stepped in after small dips. By the end of August, however, the pace of gains appeared weaker.

Matrixport said momentum was fading and placed Ethereum’s near-term range between $4,355 and $4,958.

The firm added that a retest below $4,355 looked likely, depending on how the market reacted to new flows of capital.

The note also linked Ethereum’s next direction to Treasury companies that hold the asset.

According to the analysis, their ability to raise money and shape the wider market story would be key.

Traders were urged to watch the technical levels closely, as ignoring them could mean missing important signals about where the coin might head next.

In addition, charts published alongside the commentary showed Ethereum price trading above its moving average for much of July and August.

However, the consistent upward push had lost strength toward the end of the month.

Matrixport called this the most important story in crypto at the time, highlighting how technical patterns often marked turning points in trading behavior.

Binance Sees Billions in Activity

Separate data from CryptoQuant showed that Binance recorded large movements in August.

Stablecoin deposits to the exchange passed $1.65 billion during the month, crossing the $1.5 billion mark on two separate occasions.

Analysts explained that when stablecoins flow into exchanges at that scale, it often signals that traders are preparing to use the funds in the market.

Alongside the inflows, Binance also experienced heavy Ethereum withdrawals. On August 24, about 90,000 ETH was removed from the exchange.

A day later, on August 25, another 118,000 ETH left. Combined, the value of the outflows was close to $1 billion.

Large withdrawals are usually read as a move toward cold storage, meaning investors prefer to hold their coins outside trading platforms.

When this happens, less ETH is left on exchanges, which means fewer people may sell in the short term.

Binance stays on top for both deposits and withdrawals because it has a huge liquidity, global access, cheap fees, and solid systems.

These make it the main platform for both big and small traders moving large amounts.

Tapiero Highlights Nine Growth Triggers for Altcoins

Meanwhile, Dan Tapiero, head of DTAP Capital, shared his outlook for the broader market.

He noted that the total market cap for all crypto, excluding Bitcoin and Ethereum, was almost unchanged from its 2021 peak.

He added that the level was only slightly higher than in 2018. Tapiero explained that many parts of today’s digital asset ecosystem did not exist seven years ago.

He listed stablecoins, decentralized finance, yield products, Solana, non-fungible tokens, decentralized exchanges, real-world assets, artificial intelligence, and prediction markets.

Each of these areas represented new sectors that had grown quickly but were still not fully priced into the wider market.

In his view, the development of these nine areas pointed to the possibility of a new altcoin season.

He argued that growth across the digital asset ecosystem was still being overlooked by valuations.

This meant that investors might soon start to look beyond Bitcoin and Ethereum when considering new opportunities.