Ethereum News Today: Ethereum Stuck Below $4,000 Despite $1.84B ETF Inflows as Analysts Predict Correction Before Breakout

Ethereum’s price has remained below the $4,000 threshold despite robust institutional demand, with analysts forecasting a short-term correction before a potential breakout. Recent data shows $1.84 billion in spot ETF inflows and increased treasury accumulation by major entities, yet strong sell walls near $4,000 have constrained upward momentum. Traders and technical analysts suggest Ether (ETH) may retrace to the $3,500–$3,300 range to consolidate gains before attempting a sustained move above the critical resistance level[1].

The price action reflects conflicting dynamics: institutional buying through treasuries and ETFs has surged, with Bitmine Immersion Tech and SharpLink Gaming acquiring over 927,600 ETH since June. However, shares of these companies have experienced recent declines, indicating profit-taking after significant rallies earlier this year. Despite this, spot ETFs now hold over $20.6 billion in net assets, signaling sustained institutional confidence in Ethereum’s long-term value[2].

Technical indicators highlight structural challenges. An inverse head-and-shoulders pattern suggests a potential target of $4,300 if the $4,000 level is cleared, but neutral funding rates and cautious trader sentiment near resistance indicate hesitation to leverage positions. Independent analyst Adam noted that sell walls in this zone could absorb short-term buying pressure, forcing ETH to consolidate or pull back. Similarly, Michael Van de Poppe, another market expert, observed that liquidity on the long side is “ready to be taken,” reinforcing expectations of a retracement to the $3,500–$3,300 support zone[3].

Market participants emphasize the importance of overcoming $4,000 to validate a bullish trend. While treasury purchases and ETF inflows provide a solid foundation, the presence of sell walls and institutional profit-taking create near-term headwinds. Neutral funding rates further underscore the market’s reluctance to aggressively push against multi-year resistance. Analysts caution that a successful breakout will likely require a period of consolidation to digest recent gains, with the $3,500–$3,300 range serving as a critical test of buying resilience[4].

The interplay between technical levels and institutional activity underscores the complexity of Ethereum’s near-term outlook. Investors are advised to monitor both price behavior at $4,000 and developments in ETF flows as key signals for potential reversals or confirmations of bullish momentum.

Source: [1] [Ethereum Price May Face Correction Before Potential Break Above $4,000 Resistance](https://en.coinotag.com/ethereum-price-may-face-correction-before-potential-break-above-4000-resistance/) [2] [Ethereum Price May Face Correction Before Potential Break Above $4,000 Resistance](https://en.coinotag.com/ethereum-price-may-face-correction-before-potential-break-above-4000-resistance/) [3] [Ethereum Price May Face Correction Before Potential Break Above $4,000 Resistance](https://en.coinotag.com/ethereum-price-may-face-correction-before-potential-break-above-4000-resistance/) [4] [Ethereum Price May Face Correction Before Potential Break Above $4,000 Resistance](https://en.coinotag.com/ethereum-price-may-face-correction-before-potential-break-above-4000-resistance/)