Key Insights:
- Ethereum faces heavy sell walls near the $4,000 resistance level.
- ETFs and whales accumulated over 1.28 million ETH in July alone.
- Neutral funding rates suggest traders remain cautious at multi-year highs.
Ethereum hovers below $4,000 as ETF inflows surge and whales accumulate, but technical resistance and neutral funding rates point to a cooling momentum ahead of a potential breakout.
ETH Stuck at $4K Despite Massive Institutional Buying
Ethereum’s price has gained 57% over the past month, but $4,000 continues to act as a firm resistance zone. Despite aggressive accumulation by institutional buyers, including ETF issuers and whales, Ether has failed to break above the key psychological level.
Independent market analyst Adam noted strong sell walls near $4,000, capping the rally. “ETH is so back,” Adam posted on X, but warned that upside momentum may fade unless the order books clear.
According to data shared by Farside Investors, spot Ethereum exchange-traded funds (ETFs) have attracted more than $1.84 billion in inflows over the past week. Total net assets held by these ETFs now exceed $20.6 billion.
ETFs, ETH Treasuries Ramp Up Exposure
Beyond ETF flows, two major corporate treasuries have ramped up their ETH holdings. Bitmine Immersion Technologies disclosed the acquisition of 566,800 ETH, while SharpLink Gaming added 360,800 ETH since June. Combined, the two firms have acquired over 927,000 ETH.
That pace of buying has fueled bullish narratives around Ether’s long-term upside. Ali, a market analyst, wrote on X that ETFs alone accumulated 1.28 million ETH in July, adding to the already aggressive demand.
The broader on-chain trend supports the narrative. Whale wallets have continued to increase holdings. According to @rovercrc, one whale bought another 12,749 ETH worth over $48 million in a single transaction. Since July 9, nine new wallets have scooped up 628,646 ETH valued at around $2.38 billion.
“Liquidity on The Longside Ready to Be Taken”
Technically, Ethereum has formed a large inverse head-and-shoulders pattern on higher time frames. The pattern suggests a breakout target around $4,300. However, the reaction at $4,000 has been muted, with funding rates still hovering at neutral levels.
Michael Van de Poppe suggested that Ethereum could dip before pushing higher. “Liquidity on the longside [is] ready to be taken,” the analyst posted, adding that a short-term retracement to $3,500 or even $3,300 may precede the next breakout.
The neutral funding rate indicates traders are not aggressively using margin at these levels. This aligns with cautious sentiment near a multi-year resistance.
Despite strong accumulation by ETFs and treasuries, the market is waiting for confirmation before a decisive breakout.
Stock Buyers Punished Despite ETH Exposure
While Ethereum treasuries like SharpLink and Bitmine have accumulated ETH, their share prices tell a different story. SharpLink’s SBET is down 36.4% this week, while Bitmine’s BMNR dropped 14.5%. The pullback follows steep multi-month rallies, with SBET up 565% and BMNR up 381% over the past quarter.
The divergence between equity and crypto markets highlights the disconnect between ETH exposure and investor risk appetite. Although these companies hold large amounts of ETH, their stock prices remain tied to broader sentiment and speculative flows.
CryptoGoos said Ethereum will “explode just like Bitcoin did in 2021.” Another user, Tony (@Ape_100x), predicted ETH would hit $12,000, adding, “I don’t make the rules.”
Momentum or Pause? Traders Brace for Next Move
The $4,000 level remains a battleground for bulls and bears. Despite whale buying and ETF support, Ethereum’s inability to clear this zone raises questions about short-term momentum.
With neutral funding rates, large sell walls, and a recent surge in on-chain accumulation, the current consolidation may be a setup for a deeper retrace or the calm before a breakout.
Institutional interest is undeniably strong. However, markets may need stronger retail participation or a catalyst to push beyond resistance.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
The post ETH Stalls Below $4K as ETFs Scoop 1.28M Coins in July appeared first on The Market Periodical.
