Ethereum faces a key technical challenge as it approaches a decisive resistance level while strong fundamentals persist.
Resistance Test and Elevated Leverage
ETH price is testing a critical resistance range between $4,020 and $4,060. Historically, this level has served as a pivot point for trend continuation or reversal. Traders are closely monitoring whether this zone will be breached or trigger a pullback.
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. These developments indicate persistent interest from major investors wanting 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 continue to increase. The SEC conclusion of liquid staking investigations alongside other regulatory clarity has eliminated uncertainty affecting market participants.
The upcoming Pectra and Fusaka enhancements will improve scalability and decrease transaction costs to support Ethereum's expanding utility. Analysts predict short-term price fluctuations due to leverage and resistance, but the ongoing upward trend remains strong.
Key technical zones to watch include support between $3,980 and $4,020, with resistance targets at $4,450 to $4,550 if the current level breaks.
The current situation with Ethereum presents significant market challenges and opportunities. Key technical levels and institutional interest will dictate future price movements.
