Ethereum (ETH) Price: Trading Near $4,600 as ETF Inflows Resume After Previous Outflows
TLDR
- Ethereum ETFs added +16.9k ETH after previous week’s -105k outflows
- Exchange reserves fell 4.41% to $80.7 billion, indicating accumulation
- 64.44% of Binance traders are long on ETH vs 35.56% short
- Dense liquidation clusters around $4,700 represent a key resistance level
- BlackRock purchased 65,901 ETH worth approximately $315.6 million
Ethereum’s price trajectory has gained renewed interest as institutional and retail indicators paint a cautiously optimistic picture. Currently trading near $4,600, ETH sits just below critical resistance levels that could determine its next major move.
The altcoin experienced a dramatic shift in ETF flows recently. After a concerning streak of outflows totaling -105k ETH last week, institutional investors have reversed course with +16.9k ETH flowing back into Spot ETFs. This turnaround hints at recovering institutional confidence after a temporary period of uncertainty.
On-chain metrics further support a potentially bullish outlook. Ethereum’s exchange reserves dropped by 4.41% to $80.7 billion, suggesting investors are moving their holdings off exchanges. This reduction in available trading supply typically indicates stronger accumulation trends and reduced immediate selling pressure.
When coins leave exchanges, it often creates favorable conditions for price stability or upward movement. The diminishing liquidity could amplify future price movements once significant trading activity resumes.
Trader sentiment also leans positive. On Binance, the long/short ratio stands at 1.81, with 64.44% of accounts maintaining long positions on ETH/USDT compared to 35.56% holding shorts. This imbalance reflects market expectations for price recovery.
Key Resistance at $4,700
Technical analysis reveals a potential hurdle ahead. Dense liquidation clusters around the $4,700 mark create a critical resistance zone. A successful push above this level could trigger a cascade of short liquidations that might fuel further upside momentum.
However, failure to breach this resistance could result in aggressive selling as leveraged long positions unwind. The concentration of liquidation levels at this price point highlights where market volatility may spike in the near term.
Ethereum’s ability to clear this barrier will likely determine whether the positive indicators translate into sustained upward movement.
Institutional interest extends beyond ETFs. BlackRock, the world’s largest asset manager, made headlines by purchasing 65,901 ETH valued at approximately $315.6 million. The transaction occurred at an average price of around $4,441 per ETH, showing confidence even at elevated price levels.
Despite this substantial investment, Ethereum experienced a short-term price dip of about 2.3% over 24 hours as some investors took profits. The weekly performance remains positive with a 7.52% gain.
Corporate Accumulation Accelerates
Corporate treasuries are also increasing their Ethereum holdings. BitMine Immersion (BMNR) recently claimed the title of world’s largest Ethereum treasury, holding 1,713,899 ETH worth roughly $7.7 billion at current prices.
This positions BitMine ahead of other major Ethereum holders and makes it the second-largest corporate crypto treasury overall, trailing only Michael Saylor’s Strategy (MSTR) with its Bitcoin holdings.
Some analysts see potential for much higher prices. Cryptocurrency analyst Merlijn Trader applied the Wyckoff Model to Ethereum’s recent price action and identified a completed accumulation cycle. According to this century-old market framework, ETH has formed the classic “Spring” pattern followed by a successful “Test,” confirming bullish demand.
The subsequent rally has broken above key resistance levels, which Merlijn interprets as the start of a parabolic markup phase that could push prices toward $6,000.
Ethereum’s fundamentals continue to strengthen through increased adoption in decentralized finance, growing smart contract usage, and its energy-efficient proof-of-stake model since The Merge.
ETH is currently trading at $4,519.58 after recent downward movement from $4,610.
The combination of renewed ETF inflows, decreased exchange reserves, and bullish trader positioning suggests potential strength for Ethereum in the near term. However, the market must overcome the formidable resistance at $4,700 to extend its recovery.
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