Ethereum News Today: Ethereum Surges 4.09% as Institutional ETF Inflows Offset High Holder Profits

Ethereum’s price surged 4.09% over the weekend, breaking above the $3,860 level and defending the critical $3,700 support, signaling short-term bullish momentum [1]. This breakout occurred amid mixed on-chain signals, as the Chaikin Money Flow (CMF) indicator showed neutral buying pressure at 0.0, while the MACD confirmed bullish momentum [1]. However, subdued trading volume raised questions about the sustainability of the rally, with the next key resistance level identified at $4,100 [1].

The holder accumulation ratio, a metric tracking the percentage of active ETH holders increasing their positions, dipped slightly below 50% [1]. This decline suggests reduced buying pressure from holders, despite the price gains, though the ratio’s proximity to 50% indicates some ongoing accumulation [1]. Meanwhile, 98.1% of Ethereum’s supply is currently in profit, a historically high threshold that has coincided with prior local price peaks in March, June, and December 2024 [1]. Analysts note that such elevated profit-taking could trigger short-term corrections as holders consider locking in gains.

Institutional demand, however, remains a strong counterbalance to these risks. Ethereum spot ETFs recorded positive net inflows for 16 consecutive trading days in July, with $452 million flowing into ETH ETFs on July 25 alone [1]. This sustained institutional interest, coupled with growth in Ethereum treasury companies, supports a medium-term bullish outlook despite bearish signals from holder metrics [1].

The interplay between these factors creates a nuanced market landscape. While Ethereum’s ability to defend key support levels and attract institutional capital underscores resilience, the high profit percentage and declining accumulation ratio highlight near-term volatility risks. Investors are advised to monitor the $4,100 resistance level and on-chain indicators for signs of market exhaustion or renewed buying pressure [1].

Source: [1] [Ethereum Could See Continued Gains Despite High Holder Profits and Lower Accumulation Ratios] [https://en.coinotag.com/ethereum-could-see-continued-gains-despite-high-holder-profits-and-lower-accumulation-ratios/]