#WeeklyHighlightPosts#  Will Ethereum Price Pullback or Rise to $5,500?

The Ethereum price remains strong, up 1.1% in the last 24 hours at around $4,770. The asset is trading 2% below its all-time high, extending its three-month gains to 85% and its one-year returns to over 70%.

This rally has been one of the strongest among major altcoins, but traders are now torn between two scenarios: a brief pullback or a breakout that would push ETH above $5,500. Both scenarios have their potential.

Large Investors Continue to Accumulate

While the Ethereum price remains resistant around $4,770, large holders have quietly increased their holdings. Wallets holding between 1 million and 10 million ETH have increased their supply from 7.42 million ETH ($35.39 billion) on August 19th to 7.63 million ETH ($36.39 billion) at the time of writing.

This means that an additional 210,000 ETH, worth approximately $1.0 billion, has been absorbed in the past few days.

At the same time, the 10 million–100 million ETH group increased its holdings from 66.8 million ETH ($318.63 billion) to 66.94 million ETH ($319.30 billion), representing an addition of 140,000 ETH worth approximately $668 million.

While Ethereum remains trading near its highs, such consistent accumulation suggests underlying confidence. However, spot buying is strengthening the underlying market, while on-chain activity is showing signs of profit-taking.

Metrics like the liveliness and cost-based heatmap add another layer of context.

The Ethereum Liveliness metric measures whether coins are being held or spent and has reached a monthly high above 0.70. Higher liveliness means coins held for longer are being moved, and this is often associated with profit-taking.

When the price last surged in early August, Ethereum fell from $4,748 to $4,077 in a matter of days. A similar cooldown is possible now, but the scale may be smaller due to stronger demand zones.

One reason any pullback may be limited can be seen in Ethereum's Cost Base Distribution Heatmap. This tool shows where coins last traded and highlights price zones with intense ETH buying activity.

Three main clusters have formed:

Almost 866,000 ETH in the $4,592–$4,648 range

Almost 700,000 ETH in the $4,648–$4,704 range

Almost 545,000 ETH in the $4,704–$4,761 range

These accumulation layers indicate strong demand between $4,590 and $4,761. If ETH falls into this area, buyers could quickly absorb the selling pressure, limiting downside risks. This is particularly evident as large holders, including whales, buy ETH during the rally. If the Ethereum price falls slightly, they may want to do the same.

Key Ethereum Price Levels to Watch

Chart-wise, Ethereum recently respected the 0.618 Fibonacci retracement at $4,948, which is typically one of the strongest resistance levels. A decisive daily close above this would pave the way towards the 1.0 extension at $5,496, effectively marking the $5,500 turning point.

On the downside, a failure to hold the $4,610 area, which aligns with both Fibonacci support and cost floor clusters, could push the price towards the $4,400 level. However, this would require selling by ETH whales and other large holders, which seems unlikely at the moment.