Ethereum continues to draw attention from traders and analysts due to its high volatility and significant institutional investments. The asset is currently positioned between two key liquidity levels.
Current Market Situation of Ethereum
Currently, Ethereum (ETH) has recorded its highest weekly close in over four years. The asset is caught between two critical liquidity levels, resulting in price fluctuations exceeding 11%. On the downside, ETH established a Monday low at $4,224, focusing attention on the support level at $4,150, supported by multiple liquidity lows. Just below is a fair value zone around $4,000, aligning with the 0.50–0.618 Fibonacci retracement range between $4,100 and $3,900. This zone attracts traders' attention.
Institutional Investments and Predictions
Despite short-term liquidity battles, the overall outlook for Ethereum remains optimistic, bolstered by record institutional inflows. Last week saw nearly 649,000 ETH net inflows into US-listed spot Ether ETFs, marking the largest weekly intake on record. This highlights robust institutional demand. Market analysts are increasingly positive about Ethereum's positioning relative to Bitcoin. In this context, dedicated Ethereum ETFs have been recognized as the 'second best' crypto asset, reflecting the rising investor interest.
Long-Term Prospects for Ethereum
From a structural analysis perspective, a deeper retest to around $3,900 may present a more constructive scenario for bulls, providing liquidity for a stronger recovery toward $4,500 and new highs in Q4. Projections for ETH envision a possible pullback to the range of $3,000–$3,500 before a rally that could surpass $8,000.
Ethereum continues to be on the radar of investors and traders due to its volatile price fluctuations and institutional interest. The asset's future will depend on its ability to overcome current support and resistance levels.
