Ethereum News Today: Ethereum Nears $4,100 Resistance After 70% Surge as Institutional Buying Drives ETFs to $18.4B

Ethereum remains below the $4,100 resistance level as analysts anticipate a potential breakout to trigger a renewed rally following a 70% price surge earlier this year. The cryptocurrency, trading at $3,644.13, is consolidating within a range of $3,530 to $3,677, with technical indicators suggesting a sideways phase ahead of a potential upward move. TedPillows, a crypto analyst, noted that Ethereum has not yet entered the "banana zone"—a term used to describe a period of consolidation before a significant price increase—and expects the market to stabilize before a decisive test of $4,100 [1].

Institutional demand for ETH has accelerated, with over 2.83 million ETH acquired by institutions since mid-May. This volume exceeds the 32 times the network’s new issuance in the same period, signaling strong accumulation by large investors. Bitwise CIO Matt Hougan highlighted the imbalance between demand and supply, stating, “There is more demand for ETH than supply” [2]. Concurrently, Ethereum ETFs have seen sustained inflows, with $296.5 million added on Tuesday alone, extending a 12-day streak of positive flows. The total ETH ETF market now surpasses $18.4 billion, reflecting growing institutional confidence [3].

Technical analysis underscores Ethereum’s resilience despite the ongoing correction. The asset remains above the midline of a long-term rising parallel channel established since 2018, with critical support near $2,800 holding firm. Relative Strength Index (RSI) readings have stabilized in neutral territory, indicating reduced overbought conditions after earlier volatility. Crypto analyst Crypto Patel observed that while ETH’s price has faced recent rejection, sustained support could precede a significant upward move [4].

Market fundamentals also remain robust, with Ethereum’s circulating supply at 120.71 million ETH and a market capitalization of approximately $438.71 billion. Daily trading volume of $45.66 billion highlights consistent activity, though prices must break above $4,100 to validate the next phase of bullish momentum. Institutional holdings by firms like BitMine and Bit Digital have grown, reinforcing long-term confidence in the asset [5].

Analysts caution that the $4,100 level is critical for confirming Ethereum’s next major trend. A breakout could trigger a “violent rally,” as outlined in TedPillows’ analysis, while a failure to hold key support levels may extend the consolidation phase. The interplay between institutional demand, ETF inflows, and technical structure will likely shape Ethereum’s trajectory in the coming weeks [6].

Source: [1] [title1] https://cryptofrontnews.com/ethereum-yet-to-enter-the-banana-zone-says/ [2] [title2] https://cryptofrontnews.com/ethereum-yet-to-enter-the-banana-zone-says/ [3] [title3] https://cryptofrontnews.com/ethereum-yet-to-enter-the-banana-zone-says/ [4] [title4] https://cryptofrontnews.com/ethereum-yet-to-enter-the-banana-zone-says/ [5] [title5] https://cryptofrontnews.com/ethereum-yet-to-enter-the-banana-zone-says/ [6] [title6] https://cryptofrontnews.com/ethereum-yet-to-enter-the-banana-zone-says/