Ethereum Surges 4% on Institutional Investments, but Faces Technical Hurdles

Ethereum has seen a 4% increase this week, with its price currently around $2,520. This rise is attributed to substantial institutional investments, with U.S.-listed spot Ethereum ETFs recording $148.57 million in net inflows in a single day, the second-highest inflow since February. The 8-week inflow total is nearing $2 billion, reflecting growing market confidence in Ethereum’s long-term value. Additionally, public companies such as SharpLink Gaming and BitMine have boosted their Ethereum holdings, further strengthening its institutional backing.

Despite these positive fundamentals, Ethereum’s technical indicators present some concerns. The cryptocurrency has struggled to maintain its position above $2,600 and is currently trading around $2,520. On the weekly chart, the 50-SMA is approaching a cross below the 100-SMA, a “death cross” that historically signals declines of up to 35%. This could potentially drive ETH toward the $1,750 support level if confirmed. Other warning signs include over $56.8 million in long liquidations within 24 hours and diminishing momentum as indicated by the RSI and Stochastic Oscillator. Analysts have also noted a potential ABCDE corrective pattern, suggesting that Ethereum’s failure to surpass $3,000, despite Bitcoin approaching new highs, indicates lingering market skepticism.

However, not all indicators are bearish. Ethereum is currently testing the base of a rising parallel channel near $2,474. On lower timeframes, the asset is forming higher highs and higher lows—a bullish structure that remains valid as long as $2,474 holds. Additionally, a multi-year symmetrical pennant is developing, with Ethereum now in wave D of the pattern. If ETH breaks above the $2,855 neckline of its inverse head and shoulders formation, it could unleash strong upside momentum, potentially reaching $3,500–$6,000. For bulls, $2,474 is a critical support level. A break above $2,855 would be a significant achievement, but until then, patience and discipline are essential.

Ethereum is currently consolidating between the 100-day and 200-day moving averages, indicating a phase of price stabilization. A decisive breakout in either direction is likely to define the next major trend, with market sentiment leaning towards a potential bullish breakout in the coming days. The cryptocurrency is range-bound between $2,500 and $2,800, and a clear breakout from this zone will likely set the stage for the next significant trend direction. Market participants are closely monitoring for a bullish continuation, which could solidify ETH’s reversal structure.

On the 4-hour chart, Ethereum’s recent rally encountered resistance at a key bearish order block between $2,625 and $2,670, where sellers re-entered the market. This rejection has pushed the price back toward the $2,500 support level, a historically significant zone for ETH. This area now serves as a crucial battleground. If buyers manage to defend it, Ethereum could regain momentum and reattempt a breakout above the overhead supply. However, failure to hold $2,500 could trigger extended consolidation or even a retracement toward lower supports.

The funding rate remains a key indicator of market sentiment in Ethereum’s futures market. In a healthy uptrend, this metric typically trends upward, reflecting increasing confidence and positioning from long-biased traders in both spot and perpetual markets. Currently, however, ETH’s funding rates have been declining amid price consolidation between the 100-day and 200-day moving averages. This suggests reduced bullish conviction and signs of buyer exhaustion, raising the likelihood of continued short-term sideways movement. For Ethereum to break above the critical $2,600 and $2,800 resistance zones, stronger demand must flow into the derivatives market, lifting the funding rate to more positive levels. Until that shift materializes, the consolidation phase is likely to persist.