The growth #Ethereum continues thanks to record inflows into spot ETFs, even as the altcoin price consolidates in the liquidity zone from $3900 to $4400.
Key takeaways:
Ethereum will face a battle for liquidity between the support level of $3900 and the resistance level of $4400.
The record inflow of 649,000 ETH ETFs underscores sustained institutional demand.
Long-term forecasts remain optimistic, with the drop to the $3000–$3500 range viewed as preparation for a rise to $8000.
#Ethereum enters a decisive trading week after recording the highest weekly candle close in the last four years, with current price action situated between two critical liquidity zones, resulting in price swings of more than 11%.
On the other hand, ETH set a Monday low at $4224, immediately focusing attention on the $4150 level – a support zone backed by several liquidity lows. Just below is the fair value gap around $4000, coinciding with the Fibonacci retracement range of 0.50–0.618 between $4100 and $3900. This confluence indicates an attractive area for swing traders to place bids.
The Kiyotaka trading platform describes this zone as a 'huge cluster of inactive orders grouped up to $3,900,' making it a critically important range for tracking liquidity-driven stop-loss hunting and potential reversals.
On the flip side, Ethereum faces immediate liquidity clustering around $4400, a imbalance formed during Monday's lows, which could act as a short-term magnet ahead of a potential correction. A sustained bullish response at this level could push ETH to $4583, a higher resistance level.
A confirmed breakout and stabilization above this level will strengthen the chances of reaching a new all-time high in the coming days, extending the multi-week bullish momentum of the coin.
From a structural standpoint, a deeper retest around $3900 may be a more constructive scenario for the 'bulls,' as it would lead to the liquidation of early long positions and fuel liquidity for a stronger recovery to $4500 and new highs in the fourth quarter.
Meanwhile, the four-hour Relative Strength Index (RSI) remains below 50, indicating the potential for further declines before ETH enters the oversold zone and prepares for a potential bullish breakout.
Institutional flows and long-term structure support an optimistic outlook for Ethereum.
Despite short-term liquidity issues, the broader outlook for Ethereum remains firmly optimistic, bolstered by record inflows of institutional funds and a favorable technical backdrop.
Last week, the net inflow of funds into spot ETH-based ETFs traded in the USA amounted to nearly 649,000 ETH, marking a record weekly inflow. Although the ETH price briefly reached $4740 before pulling back over the weekend, the inflow dynamics indicate strong institutional demand.
Market analysts are also increasingly positive about Ethereum's positioning relative to Bitcoin. Bloomberg's senior ETF analyst, Eric Balchunas, notes that the ETH ETF has turned Bitcoin into the 'second most significant' crypto asset as of July, awarding it the title of 'ETF of the month' after unprecedented investor interest.
From a technical perspective, traders point to a multi-year bullish pennant for Ethereum, a 'sleeping setup' that is now approaching the breakout zone.
Each decline has been accompanied by smart accumulation of funds, while weak positions exited the market during previous consolidations.
The long-term forecast $ETH suggests a pullback to the $3000–$3500 range before ETH begins a rally above $8000, potentially marking the start of a new chapter in Ethereum's price history.
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