Ethereum News Today: Ethereum Nears $4,000 Resistance as ETF Inflows Fuel 52% 15-Day Surge

Ethereum is approaching a potential breakout from a descending broadening wedge pattern as it nears the $4,000 resistance level, with rising ETF inflows and reduced selling pressure reinforcing bullish sentiment. The technical setup, characterized by expanding trendlines on the weekly chart, indicates the culmination of a bearish phase and a possible shift toward sustained upward momentum. Historical precedents suggest such patterns often precede significant price surges, with COINOTAG analysts projecting potential targets beyond $6,000 if the breakout confirms [1].

The asset’s on-chain metrics highlight declining selling pressure relative to Bitcoin, marked by a five-year low in ETH/BTC exchange inflows. This suggests fewer tokens are being moved to exchanges for trading or liquidation, reducing the risk of abrupt sell-offs. Concurrently, Ethereum spot ETFs have attracted $332.2 million in recent inflows, reflecting growing institutional participation. Strong support zones identified between $2,000 and $3,000 further underpin the asset’s resilience during prior pullbacks, creating a favorable environment for a breakout [1].

Critical resistance remains at $4,000, a psychological and technical barrier that has historically capped ETH’s rallies. A successful breach would likely trigger a rally toward $4,568.90 and potentially $6,000, aligning with Fibonacci retracement levels and prior resistance points. The Relative Strength Index (RSI) currently hovers near neutral territory, indicating room for upward movement without immediate overextension risks. Traders are urged to monitor volume dynamics, as surging buying activity would validate the breakout’s sustainability [1].

Analysts note Ethereum’s 52% gain over the past 15 days, underscoring its role as a momentum-driven asset. A key retest of the long-term trendline is underway, with a sustained hold above this level likely to propel ETH toward upper resistance targets. Conversely, failure to maintain above the trendline could lead to short-term consolidation or minor corrections, emphasizing the need for disciplined risk management. Institutional flows and on-chain data remain central to gauging the trajectory of Ethereum’s next move [1].

The confluence of technical patterns and institutional demand suggests Ethereum could enter a transformative phase. While cautious optimism is warranted, the current environment offers a compelling case for investors to monitor ETH’s progress. A confirmed breakout from the descending broadening wedge would signal a broader shift in market sentiment, positioning Ethereum for a potential multi-month rally.

Source: [1] [Ethereum Nears Potential Breakout From Descending Broadening Wedge Amid Rising ETF Inflows] [https://en.coinotag.com/ethereum-nears-potential-breakout-from-descending-broadening-wedge-amid-rising-etf-inflows/]