Ethereum News Today: Ethereum hits $4,300 high on ETF inflows and institutional demand

Ethereum’s price surged past $4,300, hitting a multi-year high amid strong bullish momentum driven by institutional demand, ETF inflows, and expanding on-chain activity. This marks Ethereum’s highest level since late 2021 and reflects a broader shift in market dynamics as Ethereum gains greater recognition as a core asset in institutional portfolios. However, recent market data from CryptoQuant highlights growing short-term risks stemming from excessive leverage across exchanges.

The all-exchange Estimated Leverage Ratio (ELR) has climbed to 0.68, nearing historical highs, signaling heightened speculative activity and potential instability [1]. While Binance’s ELR remains relatively lower at 0.52, other platforms show increased leverage, raising concerns over market fragility. Additionally, Ethereum is currently testing a critical resistance zone between $4,020 and $4,060. This area has historically acted as a decisive threshold for whether a rally continues or faces a sharp pullback. Binance netflows have also surged above the all-exchange average, suggesting concentrated inflows that may trigger localized sell pressure, possibly tied to liquidation or arbitrage activities [1].

Despite these short-term risks, Ethereum’s mid-term outlook remains strongly bullish. Institutional demand has surged, with US Spot Ethereum ETFs recording a record $726.6 million in daily net inflows, primarily driven by major firms such as BlackRock and Fidelity. Total ETF holdings have now surpassed 5 million ETH, valued at around $20.3 billion, signaling Ethereum’s growing institutional adoption [1].

Large institutional investors are also increasing direct exposure to Ethereum. Ark Invest recently purchased 30,755 ETH, valued at approximately $108.57 million, while Fundamental Global allocated $200 million to ETH as part of its treasury strategy. This trend of accumulation reflects deepening confidence in Ethereum’s utility and long-term value.

On-chain activity further supports the bullish narrative. Transaction volumes are reaching new highs, and staking participation continues to expand, locking up more ETH and reducing circulating supply. Regulatory clarity, including the SEC’s closure of investigations into liquid staking, has also boosted structural demand for ETH. Additionally, upcoming network upgrades—such as Pectra and Fusaka—are expected to improve scalability and reduce costs, enhancing Ethereum’s appeal to developers and enterprises [1].

From a price action perspective, Ethereum’s 4-hour chart shows a strong breakout above the key resistance at $3,860, which had been a cap for much of July. Following this move, ETH surged past $4,300, marking its highest point since November 2021. The price is now consolidating around $4,240, suggesting a temporary pause before the next move. The $3,860–$3,900 zone has become a critical support level, and a retest of this area could offer a healthy setup for further bullish continuation.

Volume spikes during the breakout indicate strong buying interest, but the reduced volume in recent candles suggests the market is waiting for fresh catalysts. A sustained move above $4,300 could open the door toward the $4,450–$4,500 zone, while a breakdown below $3,860 would weaken the current bullish structure [1].

In summary, while Ethereum’s strong fundamentals and institutional adoption support a positive mid-term outlook, short-term leverage risks and key resistance levels suggest potential volatility. Investors should remain cautious as the market navigates these dynamics.

Source: [1] Ethereum Bullish Fundamentals Clash With Short-Term Leverage Risks (https://www.newsbtc.com/news/ethereum/ethereum-bullish-fundamentals-clash-with-short-term-leverage-risks/)