Ethereum News Today: Ethereum Nears 2021 High as Retail Skepticism Contrasts Institutional Buying

Ethereum (ETH) is currently within 6.3% of its all-time high of $4,891, set on November 16, 2021, and has gained over 8% in the past 24 hours to trade above $4,600. Despite this strong price performance, retail traders remain skeptical and continue to sell rather than accumulate, according to data from Santiment. This trend reflects a historical pattern where retail sentiment often moves counter to price action during key price levels [1]. The prevailing fear, uncertainty, and doubt among smaller investors stand in contrast to the broader market's technical and fundamental optimism.

The divergence between retail and institutional behavior is notable, as larger players absorb the ETH being sold by retail investors. This dynamic suggests that sentiment-based resistance may be limited ahead of a potential retest of the 2021 peak. Altcoin Vector notes that Ethereum's new high is likely just a matter of time and that a significant technical breakout could trigger a market rotation, shifting capital into altcoins linked to Ethereum’s ecosystem, such as Liquid Staking Derivatives (LSDs) and DeFi protocols [1]. A weekly close above the previous all-time high would validate the move on a higher timeframe, potentially setting the stage for a new bullish phase.

Fundamentals also support the case for further upside. Ethereum’s daily transaction volume has reached a record 1.875 million, indicating strong network activity. A decisive breakout above $4,750, supported by sustained transaction momentum, could lead to a new phase of price discovery. Conversely, strong selling pressure could result in short-term consolidation or a pullback toward $3,950 [1]. Long-term holder behavior has also shifted, with reduced selling pressure and stronger holding patterns indicating early bullish cycle signals.

Crypto analyst Ali Martinez has identified $5,210 and $6,946 as key resistance levels for Ethereum, which would need to be cleared for the price to continue higher. Meanwhile, the Pectra upgrade has driven an all-time high in new smart contract creation, reinforcing the strength of Ethereum’s ecosystem and developer activity. These factors, along with surging DeFi and NFT usage, provide a solid foundation for further upward movement [1].

At the same time, Bitcoin’s performance near $120,000—having surpassed its 2021 peak in March 2024—has contributed to a broader sense of optimism in the crypto market. However, the Ethereum Foundation’s recent offloading of $12.7 million worth of ETH has raised questions about the long-term price trajectory and positioning of key stakeholders [2].

On the protocol side, Eden Network, an MEV-Boost relay launched in 2021, has announced its winding down. The decision comes as the MEV space becomes increasingly competitive and costly, with only a handful of operators remaining profitable. Eden will distribute its entire treasury of 2,000 ETH to EDEN token holders in a token retirement program, limited to non-U.S. residents and set to conclude by September 30 [2].

The broader market is also showing signs of divergence. While Ethereum moves closer to its 2021 high and Bitcoin stabilizes near record levels, a growing gap exists between human traders and algorithm-driven investors. This tension reflects the broader market’s mixed sentiment, with automated systems driving short-term momentum while many retail participants remain cautious [3].

Source:

[1] Ethereum (ETH) Within Striking Distance of 2021 Peak …

(https://cryptopotato.com/ethereum-eth-within-striking-distance-of-2021-peak-amid-retail-disbelief/)

[2] Bitcoin Holds Near $120K, Ether Rallies Towards $4.7K on ...

(https://www.coinglass.com/ru/news/532624)

[3] Divergence Emerges Between Human Traders and ...

(https://johnlothiannews.com/divergence-emerges-between-human-traders-and-computer-driven-investors/)