Ethereum, the second-largest cryptocurrency by market capitalization, is currently trading at $3,644.13, hovering below a crucial resistance level of $4,100. Despite a remarkable 70% surge earlier this year, the crypto asset is now consolidating within a narrow range of $3,530 to $3,677. Analysts suggest this consolidation phase could be a precursor to a significant breakout, with some expecting another rally if the price can manage to breach the resistance.
Crypto analyst TedPillows remarked that Ethereum has yet to enter what he calls the “banana zone,” a term denoting a period of stability before a pronounced price increase. He believes the current market dynamics necessitate a stabilization period before testing the $4,100 resistance for a decisive breakout. As investors keep a keen eye on this level, technical indicators are suggesting a sideways movement could persist in the short term.
Institutional demand for Ethereum has seen a considerable uptick, with over 2.83 million ETH acquired by large investors since mid-May, significantly outpacing the network’s new issuance during that timeframe—by a staggering 32 times. This surge in institutional buying highlights a growing confidence in Ethereum’s long-term prospects. Bitwise Chief Investment Officer Matt Hougan underscored this trend, making it clear that “There is more demand for ETH than supply,” signifying a robust market environment that could favor price appreciation.
On top of strong institutional interest, Ethereum exchange-traded funds (ETFs) have experienced sustained inflows, with $296.5 million added on a recent Tuesday, extending a remarkable 12-day streak of positive inflows. The total value of the ETH ETF market has now exceeded $18.4 billion, reflecting a growing institutional appetite for Ethereum and indicative of its strengthening market position.
From a technical perspective, Ethereum exhibits considerable resilience, even amid recent corrections. The cryptocurrency remains above the midline of a long-term rising parallel channel formed since 2018, with critical support indicating a strong baseline around $2,800. Relative Strength Index (RSI) readings have settled into neutral territory, suggesting that the asset has moved away from overbought conditions that had characterized earlier volatility. Analyst Crypto Patel noted that while Ethereum’s price has faced recent rejections near the resistance, ongoing support may very well set the stage for a significant upward movement.
The market fundamentals continue to display strength, with Ethereum’s circulating supply at 120.71 million ETH and a market cap around $438.71 billion. Daily trading volume stands at approximately $45.66 billion, demonstrating a consistent level of market activity. However, for Ethereum to enter the next bullish phase, breaking above the $4,100 resistance level is essential.
Analysts warn that successfully crossing the $4,100 threshold is critical for confirming Ethereum’s next major trend. Should a breakout occur, it could initiate what TedPillows describes as a “violent rally.” Conversely, failure to maintain key support levels might see the current consolidation phase extend further. As the interplay between institutional demand, ETF inflows, and the asset’s technical structure unfolds, Ethereum’s trajectory will be a crucial aspect for traders and investors to monitor in the coming weeks.
