Ethereum Price Remains Unsteady Despite Recent Corporate Buys Surpassing the $3,700 Mark
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Ethereum (ETH) is facing resistance at the $3,700 to $3,750 level, despite significant corporate accumulation and ETF outflows. This resistance is due to a combination of strong technical resistance, bearish selling pressure, and cautious market sentiment.
ETH's struggle to maintain momentum above $3,700 is attributed to several key factors. The range of $3,700 to $3,750 corresponds with the 61.8% Fibonacci retracement level from recent highs and the 100-hour Simple Moving Average, creating notable selling pressure as bulls face stiff competition from bears near these points.
Moreover, moving average convergence divergence (MACD) on hourly charts is in bearish momentum, and the Relative Strength Index (RSI) has dropped below 50, signalling selling pressure even though daily support levels remain intact.
While whales and institutions are accumulating ETH, Ethereum-based exchange-traded funds (ETFs) experienced large outflows, adding to supply pressure that caps price growth temporarily. This market divergence highlights the ongoing institutional support for ETH, but also the potential for short-term sell-offs.
Ethereum's network fundamentals are improving, with a surge in daily on-chain transactions nearing all-time highs, indicating strong network usage and interest. However, price is consolidating within a symmetrical triangle, showing indecision that traders interpret as hesitation near resistance zones.
Competitive pressures from other blockchains like Solana and mixed market sentiment enforce caution, causing some traders and investors to hold back on pushing ETH well above resistance without clear momentum signals.
If ETH fails to clear the resistance at $3,620, support exists at $3,550 and $3,510. In a bearish scenario, a drop below these levels could send ETH toward $3,420 or even $3,350.
Price analysts view $3,094 as a critical support level for maintaining the upward trend of Ethereum. This level is being closely watched, as it could potentially act as a springboard for a new rally if it holds.
In the corporate world, SharpLink Gaming has boosted its ETH holdings to 521,939 ETH and plans to expand its ATM facility to $6 billion, making it the second-largest publicly traded company holding ETH. BitMine, backed by Peter Thiel, owns more than 833,100 ETH, making it the leader among publicly traded companies holding ETH.
This corporate accumulation of Ethereum represents a growing trend of institutions treating Ethereum as a treasury asset. However, the record ETF outflows present a concerning signal for market sentiment toward Ethereum in the near term. These flows will be closely monitored in the coming days.
The ETH futures market saw $108 million in liquidations in 24 hours, with $74 million long positions being liquidated and $34 million short positions being closed. Technical analysts are watching the $3,094 level as key support.
In summary, Ethereum’s resistance at around $3,700-$3,750 arises from a convergence of strong technical and psychological barriers, bearish momentum indicators, ETF outflows, and cautious market sentiment, despite ongoing whale accumulation and robust on-chain activity. A sustained break above this level, accompanied by bullish technical signals and continued institutional support, would be needed to overcome this resistance and potentially target $4,000 or higher.
- Advances in technology have led to significant corporate accumulation of Ethereum, with entities like SharpLink Gaming and BitMine, backed by Peter Thiel, holding sizable amounts of ETH.
- Despite this, the National Stock Exchange (NSE) has witnessed large outflows from Ethereum-based exchange-traded funds (ETFs), creating supply pressure that caps the growth of cryptocurrency prices temporarily.
- As Ethereum competes with other cryptocurrencies like Bitcoin and Solana, investors are carefully observing the performance of ETH on the finance market, cautiously choosing their steps due to mixed market sentiment and ongoing fluctuations.
