- ETH traders expect a retest of the $3,500 to $3,300 range before targeting new year-to-date highs
- Ethereum’s treasury buying and consistent spot ETF inflows have not been enough to push the price above $4,000
- Market analysts point to sell walls and potential technical corrections as a prelude to a breakout
Ethereum traders are anticipating a retest of lower support levels around the $3,500 to $3,300 zone before any breakout to new highs above $4,000. Despite gaining 57% over the past month, Ether’s price has been consistently facing resistance near the $4,000 mark, leading to expectations of a potential correction before the next leg up.
Independent market analyst Adam noted the presence of sell walls in the $4,000 region, stating that although “ETH is so back,” the price could lose momentum until these walls are either filled or pulled back.
Ether traders buying and ETF inflows fail to break $4K resistance
The majority of Ether’s price movement aligns with the launch of Ether treasuries by companies like Bitmine Immersion Tech and SharpLink Gaming. Since June, these firms have accumulated significant amounts of ETH, with Bitmine Immersion Tech acquiring 566,800 ETH and SharpLink Gaming acquiring 360,800 ETH. Additionally, Ethereum spot ETF inflows have surged, totaling over $1.84 billion in the last week, with net assets for spot ETH ETFs now surpassing $20.6 billion.
Despite this consistent buying, stocks tied to these companies have seen declines in recent days. SharpLink Gaming’s SBET and Bitmine Immersion Tech’s BMNR stocks are down 36.4% and 14.52%, respectively, following massive rallies of 565% and 381% over the past three months. This correction is not unusual after such significant gains, suggesting that the current market sentiment is hesitant at the $4,000 level.
Technical analysis points to a $4K showdown
From a technical perspective, Ethereum’s higher time frame market structure suggests a confirmed inverse head-and-shoulders pattern, with a target price of $4,300. However, despite steady purchases from institutional investors, including ETH treasuries and spot ETFs, the funding rates remain neutral. This indicates that risk-loving traders are reluctant to take on additional margin, particularly as Ethereum faces strong resistance at a multi-year high.
Some traders, such as market analyst Michael Van de Poppe, believe that liquidity on the long side is “ready to be taken,” suggesting a brief retrace to the $3,500 to $3,300 zone could occur before ETH breaks through the $4,000 resistance and targets higher levels.
Ethereum’s path to $4K remains uncertain but promising
Despite the current resistance and market uncertainty, Ethereum’s fundamental and technical factors continue to point toward a possible breakout past the $4,000 mark. As institutional support for ETH continues to grow, traders are eyeing the $4,300 target, though the road ahead could include a retest of lower levels before reaching that milestone.
