Ethereum ETF Surge Drives $16B Demand, ETH Eyes $4,500 Resistance
Ethereum (ETH) surged toward the $4,500 resistance on Thursday, fueled by heightened demand from exchange-traded funds (ETFs)...
Quick overview
- Ethereum (ETH) is approaching the $4,500 resistance, driven by increased demand from ETFs and corporate treasuries.
- Since the May Pectra upgrade, ETH has surged 140%, significantly outperforming Bitcoin and Solana.
- Sygnum Bank reports that shrinking exchange reserves and rising staking, now at 30% of total supply, indicate strong demand pressure.
- Technical indicators suggest mild bullish momentum, with support near $4,000 and potential for a rally if $4,500 is flipped into support.
Ethereum (ETH) surged toward the $4,500 resistance on Thursday, fueled by heightened demand from exchange-traded funds (ETFs) and corporate treasuries. A recent Sygnum Bank report highlights that accelerated accumulation is creating a potential supply squeeze.
Since the early May Pectra upgrade, Ethereum has soared 140%, vastly outperforming Bitcoin’s 15% and Solana’s 42% gains. Analysts attribute this growth to staking improvements, enhanced scalability, and regulatory clarity from the SEC, alongside supportive frameworks like the GENIUS and CLARITY Acts.
- US spot Ethereum ETFs have recorded over $10.3 billion in net inflows since May (SoSoValue).
- Corporations have acquired nearly $16 billion in ETH for treasuries (Strategic ETH Reserve).
- Whales holding 10,000–100,000 ETH accumulated 5.6 million ETH (CryptoQuant).
Sygnum Bank emphasizes that shrinking exchange reserves and increased staking—now representing roughly 30% of Ethereum’s total supply—signal intensified demand pressure.
Holdings in Ethereum investment funds have doubled since April, now totaling about 6. 5 million $ETH.#etherum #crypto
— Crypto Zabi (@zabishaikhs) September 12, 2025
Staking Boosts Institutional Interest
The bank notes that Ethereum’s yield-bearing opportunities are driving institutional flows. SEC clarifications on liquid staking as non-securities have boosted confidence in staking-based ETFs, differentiating them from Bitcoin ETFs.
Investor behavior also explains recent validator exits, which were driven more by rebalancing staked positions than profit-taking. Looped staking trades temporarily reversed due to ETH borrowing rates exceeding staking yields, but long-term demand remains intact.
- Liquid staking integration strengthens Ethereum ETFs.
- Corporate treasuries seek passive yield from staking.
- Exchange reserves continue to shrink below cycle lows.
Sygnum analysts suggest deposits will likely continue as ETF staking approvals become more probable, further supporting Ethereum’s upward momentum.
Technical Outlook: ETH Retests $4,500
ETH retested $4,500 resistance after breaking above a descending triangle pattern. Futures liquidations totaled $71.8 million in the past 24 hours, split between $38.1 million in long and $33.7 million in short positions (Coinglass).
Technical indicators signal mild bullish momentum:
- Stochastic Oscillator rose above its neutral level.
- Relative Strength Index (RSI) crossed above its moving average.
Support is near the 50-day Simple Moving Average, just above the $4,000 psychological level. A drop below could pressure ETH toward $3,500, while flipping $4,500 into support may trigger a rally toward the all-time high of $4,956.
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