- Ethereum nears $4,060 resistance with record leverage levels, testing a pivotal price zone historically marking continuation or reversal points.
- US Spot Ethereum ETFs post $726.6M daily inflows, lifting total holdings above 5 million ETH, led by BlackRock and Fidelity.
- Network activity surges with record transactions and growing staking, supported by upcoming scalability upgrades, Pectra and Fusaka, enhancing Ethereum’s utility.
Ethereum is facing a key technical challenge as its price approaches a decisive resistance zone while broader fundamentals remain strong. Short-term market conditions suggest caution, but mid-term institutional demand continues to provide underlying support.
Resistance Test and Elevated Leverage
The ETH price currently approaches an essential resistance range stretching from $4,020 to $4,060. This level has functioned as a turning point for either trend continuation or trend reversal throughout history. Traders pay close attention to whether this area will be broken through or if it will start a price decline.
On-chain metrics show the all-exchange Estimated Leverage Ratio (ELR) at 0.68, near historical highs, indicating elevated market-wide leverage. Binance’s ELR, at 0.52, is notably lower, suggesting higher relative leverage usage on other platforms. Binance netflows have also spiked sharply above the all-exchange average. Such inflows may precede localized sell pressure, potentially from liquidations or arbitrage trades.
Institutional Inflows and Network Growth
Mid-term market structure is supported by increasing institutional demand. US Spot Ethereum ETFs have recorded $726.6 million in daily net inflows, marking a new high. BlackRock and Fidelity have been leading this accumulation, pushing total ETF holdings above 5 million ETH, valued at around $20.3 billion.
Institutional activity extends beyond ETFs. Ark Invest purchased 30,755 ETH at $108.57 million value while Fundamental Global committed $200 million towards its ETH treasury. The developments indicate persistent interest from major investors who want to maintain long-term exposure to Ethereum.
Strengthening Fundamentals and Key Levels
Ethereum’s network usage shows continuous growth as transaction volume hits new highs and staking network participants keep increasing. The SEC conclusion of liquid staking investigations alongside other regulatory clarity has eliminated uncertainty that affected market participants.
The upcoming Pectra and Fusaka enhancements will improve scalability and decrease transaction costs to support Ethereum’s expanding utility. Analysts expect short-term price swings due to leverage and resistance yet the sustained rising trend remains robust.
The critical price levels to monitor include support between $3,980 and $4,020 and resistance targets at $4,450 to $4,550 if the current price surpasses this level.
