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- Ethereum rallied 9%, reclaiming $4,100 as new support.
- Institutional inflows and rising DeFi TVL strengthen bullish outlook.
- ETH must clear $4.7K with volume to challenge the $5K level.
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Ethereum (ETH) posted a strong 9% gain last week, pushing past $4,100 and briefly establishing it as new support. The rebound comes amid tightening supply and growing institutional inflows, signaling renewed confidence in the leading smart contract platform. On-chain metrics show a noticeable uptick in long-term holding behavior and capital rotation back into DeFi, reinforcing Ethereum’s market strength.
Institutional Flows and DeFi Strength Drive the Rally
Ethereum’s Total Value Locked (TVL) continues to climb, reaffirming its dominance in the decentralized finance ecosystem. Analysts point to a supply squeeze and heightened institutional participation as major catalysts behind the surge. The rally also coincides with macroeconomic uncertainty, including the risk of a U.S. government shutdown, which has historically benefited alternative assets like crypto and gold.
On the technical front, Ethereum’s breakout above the long-standing $4.1K resistance — a level it struggled with since early 2024 — has strengthened bullish sentiment. However, the On-Balance Volume (OBV) indicator suggests buying pressure has yet to match price gains, hinting at potential short-term fatigue.
Bulls Hold Edge, But Resistance Looms at $4.7K
While weekly momentum remains positive, Ethereum faces resistance between $4,460 and $4,720. A clean break above this range could open the path to $5,000 and beyond. In contrast, failure to maintain momentum might trigger a pullback toward $3,900 — a key support zone watched by traders.
Also Read: XRP Could Surpass Bitcoin and Ethereum by 2030? Analyst Makes Bold Claim
Swing traders are advised to stay patient: confirmation above $4.7K or a retracement closer to $3.5K may offer better entry points. Long-term sentiment, however, remains overwhelmingly bullish, with targets around $5.4K and $5.9K based on Fibonacci extensions.
Outlook: Ethereum Eyes $5K, But Needs Volume Confirmation
Ethereum’s outlook stays optimistic, supported by institutional inflows, a rising TVL, and broad market recovery. Yet, to break decisively above $5,000, traders will need to see sustained volume and stronger conviction from buyers. Until then, the $4.1K–$4.7K range remains the battleground for ETH’s next move.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
