Ethereum Holds $4,100 Support as $547M ETF Inflows Signal Institutional Confidence
Ethereum (ETH) is trading at about $4,100 as of Tuesday. It has stayed stable even though the market as a whole has been going through
Quick overview
- Ethereum is currently trading around $4,100, maintaining stability despite market corrections.
- Recent data shows significant institutional interest in Ethereum ETFs, with $547 million in net inflows, indicating renewed confidence in the asset.
- While institutional accumulation is strong, declining network activity raises concerns about short-term price movements for ETH.
- Technical analysis suggests that Ethereum faces resistance at $4,240, with potential for a rally towards $4,800 if bullish momentum continues.
Ethereum ETH/USD is trading at about $4,100 as of Tuesday. It has stayed stable even though the market as a whole has been going through corrections that have affected both cryptocurrencies and stocks. The top smart contract platform has had trouble getting back to the $4,200 threshold, but big institutional investments in spot Ethereum exchange-traded funds show that traditional finance firms still think ETH will do well in the medium run.
Record Ethereum ETF Inflows Reverse Bearish Sentiment
According to SoSoValue statistics, Monday’s trading session saw a huge change in Ethereum ETF demand, with spot products seeing $547 million in net inflows. This big change comes after a week of outflows and shows that institutions are once again interested in getting exposure to the second-largest cryptocurrency by market cap.
These inflows came at a time when worries about a possible US government shutdown were lessening and the artificial intelligence business was becoming more optimistic after OpenAI’s collaborations with Nvidia and Oracle. These events helped investors feel more comfortable taking risks in the financial markets. Ethereum saw a rise in value as investors moved back into digital assets.
At the moment, spot Ethereum ETFs have $22.8 billion in assets, and futures open interest is an astonishing $55.6 billion. This makes ETH the second-most popular institutional crypto asset behind Bitcoin.
ETH Corporate Treasuries Continue Aggressive Accumulation
BitMine Immersion (BMNR) added 234,800 ETH to its Ethereum holdings on Monday, raising the company’s total reserves to over $10.6 billion worth of Ether. This supports the optimistic institutional narrative. Tom Lee, the chairman of BitMine, has said again that the company’s long-term goal is to buy up 5% of Ethereum’s total supply. This shows that he believes in the asset’s basic value proposition.
Also, a new agreement between Consensys, the top developer of the Ethereum ecosystem, and SWIFT, the worldwide interbank messaging network, gives Ethereum’s institutional credentials more weight. More than 30 banks will work together on a cross-border payments prototype that aims to make tokenized assets work better together. However, the price of ETH may not go up much because SWIFT only sends messages and doesn’t move assets directly.
Network Activity Decline Weighs on Near-Term Sentiment
Even if institutions are in a solid position, onchain metrics paint a more apprehensive picture. According to Nansen data, Ethereum network activity has gotten worse over the past 30 days. Fees have gone down by 12% and the number of transactions has gone down by 16%. This is very different from other networks like BNB Chain, where fees went up 95%, and HyperEVM, where they went up 70% at the same time.
The drop in network activity means that fewer people are using Ethereum’s blockspace, which could slow down the price rise in the short term. The difference between institutional accumulation and retail use is still a major source of stress for ETH’s price movement.
ETH/USD Technical Analysis: Key Resistance at $4,240 Guards Path to $4,800
From a technical point of view, Ethereum is holding steady above important support at $4,120, where a bullish trend line gives it even more strength. The asset is trading above its 100-hourly Simple Moving Average, and both the hourly MACD and RSI are signaling that it is going up.
The first level of resistance is $4,200, and the important level of $4,240 is the 76.4% Fibonacci retracement of the recent drop. A clear break above this zone would go to $4,280, then $4,320. If it breaks through $4,320, it might start a rally toward $4,450-$4,500 in the near future.
If ETH doesn’t break through the $4,200 resistance, it could test the $4,095 support level again. If selling pressure rises, it could go further lower, to $4,020 and maybe even $3,920.
Ethereum Price Prediction: Bulls Eye $4,800 Recovery
CoinGlass data shows that if Ethereum reaches $4,350, about $1 billion in short positions will have to be closed, which might lead to a big short squeeze. Also, the $1.6 billion FTX Recovery Trust distribution that is set to happen on Tuesday could bring new money into the crypto market as creditors may reinvest the money they get back.
Ethereum looks like it might try to recover to $4,800, the level last seen on September 13, thanks to ongoing institutional buying, high ETF inflows, and the way the market is set up. However, traders should keep in mind that falling network activity and sensitivity to macroeconomic factors, especially the prospects for US economic growth, could limit gains or cause corrections.
If bullish momentum keeps up, ETH is most likely to slowly rise toward $4,350-$4,450 over the next week. A full recovery to $4,800 will depend on better onchain metrics and continuing institutional backing.
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