Ethereum News Today: Ethereum Nears $4,000 Resistance as ETF Inflows and Network Activity Fuel 30% Rally Potential

Ether (ETH) is approaching a pivotal moment as it nears the $4,000 resistance level, a threshold it has tested three times since February 2024 without success. Recent developments, however, suggest a potential breakthrough may be on the horizon, driven by record Ethereum ETF inflows, corporate treasury accumulation, and robust network activity [1]. Analysts and market data indicate a convergence of factors that could propel ETH toward $5,000, raising the question: Is this time different for Ethereum’s price action?

Institutional demand for ETH has surged, with U.S.-based spot Ethereum ETFs experiencing unprecedented inflows. On July 16, a single-day inflow of $727 million was recorded, and cumulative net inflows surpassed $9.33 billion since their July 2024 launch [1]. BlackRock’s ETHA ETF alone holds $10.69 billion, reflecting growing institutional confidence. Notably, ETH ETF inflows have outpaced Bitcoin ETFs for seven consecutive days, signaling a shift in capital allocation [1]. Corporate adoption is also intensifying, with firms like BitMine Immersion Technologies acquiring $2 billion worth of ETH in 16 days, becoming the largest corporate holder. Strategic Ether Reserves data show that treasury companies now hold 2.33 million ETH, or 1.93% of the circulating supply [1].

Ethereum’s network fundamentals further underscore its resilience. Daily average transactions rose to 1.62 million on July 25, a 73% increase from the past three months’ average of 932,000 [1]. Active addresses hit a 12-month high of 670,000, while weekly decentralized exchange (DEX) volumes reached $22.54 billion—a 21-week peak. Total value locked (TVL) in Ethereum’s DeFi protocols has rebounded to $86 billion, capturing 61% of the market share since 2022 [1]. Exchange-held ETH has dwindled to 15.6 million, levels last seen before the 2017 bull run, potentially tightening supply and supporting higher prices [1].

Technically, the ETH/USD pair has broken out of a bull flag pattern on the four-hour chart, with the price closing above $3,740 on July 26. This breakout aligns with the 50-period simple moving average (SMA) and projects a price target of $5,000—a 30% increase from current levels [1]. The relative strength index (RSI) stands at 61, indicating bullish momentum without immediate overbought conditions [1]. Galaxy Digital CEO Michael Novogratz has forecast ETH reaching $4,000 within six months, predicting it will outperform Bitcoin [1].

Despite these indicators, volatility remains inherent to the market. The convergence of ETF demand, corporate adoption, and network strength creates a compelling case for a sustained rally. However, as with any investment, risks persist, and market participants are urged to conduct independent research before making decisions [1].

Source: [1] [Ethereum price headed for $4K showdown: Is this time different?] [https://cointelegraph.com/news/ethereum-price-headed-for-showdown-4k-is-this-time-different?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound]