Ethereum News Today: Ether's $4K Dance: Consolidation or Catalyst for New Heights?

Ethereum (ETH) dropped over 10% after hitting key resistance levels and testing historical price zones, despite maintaining bullish momentum driven by record inflows into spot Ethereum ETFs and high network activity. The altcoin closed the week at $4,475 on August 13—the highest weekly close in four years, surpassing the $4,000 barrier that had persisted since 2021. However, recent price action shows volatility as ETH consolidates between $3,900 and $4,400, a critical liquidity zone where traders are closely watching for potential reversals or breakdowns.

On the downside, ETH hit a low of $4,224 on Monday, reinforcing the $4,150 support level, which analysts view as a key area for buyers to establish bids. The $4,000 level also acts as a fair value gap, aligned with Fibonacci retracement zones, and is seen as a potential area for swing traders to step in. Kiyotaka, a trading platform, noted a significant cluster of resting bids extending down to $3,900, suggesting a possible retest and subsequent bounce scenario. A sustained move below $4,150 could trigger a deeper decline toward the $3,650–$3,750 range, according to technical analyst Demi-Defi.

On the upside, ETH faces resistance near $4,400, a level that could attract buyers before a potential retracement. A successful break above this threshold would set the stage for a move toward $4,583 and possibly new all-time highs if bulls continue to hold key support levels. The four-hour RSI remains below 50, indicating further downward pressure is still possible before ETH reaches oversold territory. Long-term projections remain optimistic, with some analysts forecasting a pullback toward $3,500 before a rally toward $8,000.

The broader demand for Ether is supported by unprecedented inflows into U.S.-listed spot Ethereum ETFs. Last week, these funds recorded over 649,000 ETH in net inflows, the highest on record, led by BlackRock’s ETHA, which now holds over 58% of all ETH ETF assets. Cumulative inflows into ETH ETFs totaled $2.9 billion in the past week, according to CoinShares, with BlackRock alone accounting for over $12.6 billion in assets under management.

Institutional interest is further bolstered by corporate treasuries, with 69 entities collectively holding $17.3 billion in ETH—approximately 3.4% of the total supply. These entities, by locking in supply, are seen as providing a stable floor for Ether's price, reducing selling pressure and reinforcing bullish technical setups. Meanwhile, Ethereum’s on-chain activity remains robust, with daily transactions hitting a record 1.74 million on August 5, driven by stablecoin transfers, decentralized finance (DeFi) activity, and layer-2 solutions.

Despite the recent dip, Ethereum’s long-term fundamentals remain strong. The network’s programmable infrastructure, smart contracts, and transaction fees continue to attract developers and businesses, contributing to demand for the token. Major Ethereum supporters, including figures like Tom Lee and Joe Lubin, argue that Ether is more than a speculative asset—it is the backbone of a future programmable financial system. With institutional and corporate backing growing, Ethereum is increasingly viewed as a cornerstone of the crypto ecosystem and a critical asset for investors seeking exposure to the digital financial transformation.

Source:

[1] ETH charts predict $3.9K retest, then a 100% rally to new highs (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)

[2] Ethereum's Big Backers Unleash Billions to Push Into Wall Street (https://finance.yahoo.com/news/ethereum-big-backers-unleash-billions-130704758.html)

[3] Ether sets highest weekly close in 4 years (https://cointelegraph.com/news/ethereum-sets-highest-weekly-close-in-4-years-watch-these-eth-price-levels)

[4] US spot Ethereum ETFs now hold over 5% of ETH supply (https://www.theblock.co/post/367378/ethereum-etfs-eth-supply)