Ethereum nears $4,060 resistance with record leverage levels, testing a pivotal price zone historically marking continuation or reversal points.
US Spot Ethereum ETFs post $726.6M daily inflows, lifting total holdings above 5 million ETH, led by BlackRock and Fidelity.
Network activity surges with record transactions and growing staking, supported by upcoming scalability upgrades Pectra and Fusaka enhancing Ethereum’s utility.
Ethereum is facing a key technical challenge as its price approaches a decisive resistance zone while broader fundamentals remain strong. Short-term market conditions suggest caution, but mid-term institutional demand continues to provide underlying support.
Resistance Test and Elevated Leverage
The ETH price is testing a critical resistance range between $4,020 and $4,060. Historically, this level has served as a pivot point for either trend continuation or reversal. Traders are closely monitoring whether this zone will be breached or trigger a pullback.
On-chain metrics show the all-exchange Estimated Leverage Ratio (ELR) at 0.68, near historical highs, indicating elevated market-wide leverage. Binance’s ELR, at 0.52, is notably lower, suggesting higher relative leverage usage on other platforms. Binance netflows have also spiked sharply above the all-exchange average. Such inflows may precede localized sell pressure, potentially from liquidations or arbitrage trades.
Institutional Inflows and Network Growth
Mid-term market structure is supported by increasing institutional demand. US Spot Ethereum ETFs have recorded $726.6 million in daily net inflows, marking a new high. BlackRock and Fidelity have been leading this accumulation, pushing total ETF holdings above 5 million ETH, valued at around $20.3 billion.
Institutional activity extends beyond ETFs. Ark Invest recently acquired 30,755 ETH, valued at $108.57 million, while Fundamental Global allocated $200 million to its ETH treasury. These developments point to sustained interest from large-scale investors seeking long-term exposure to Ethereum.
Strengthening Fundamentals and Key Levels
Ethereum’s network activity is expanding, with transaction volumes reaching record levels and staking participation continuing to grow. Regulatory clarity, including the SEC’s closure of investigations into liquid staking, has removed a layer of uncertainty for market participants.
Upcoming upgrades such as Pectra and Fusaka are expected to enhance scalability and lower transaction costs, supporting Ethereum’s broader utility. Analysts note that while short-term volatility is possible due to leverage and resistance pressures, the underlying uptrend remains intact.
Key technical zones to watch include support between $3,980 and $4,020, with resistance targets at $4,450 to $4,550 if the current level breaks.
