Ethereum (ETH) is testing the crucial $4,000 resistance level amid a confluence of bullish factors, including substantial institutional inflows into new exchange-traded funds (ETFs), robust corporate accumulation, and record on-chain activity.
The launch of spot Ethereum ETFs in the United States has ignited significant institutional demand. These funds have attracted record inflows since their debut, highlighted by a single-day surge of $727 million. Cumulatively, net inflows have exceeded $9.33 billion.
Simultaneously, corporate treasuries are actively accumulating ETH. Current corporate holdings now stand at approximately 2.33 million ETH, representing nearly 2% of the cryptocurrency’s total supply, signaling deepening institutional adoption.
Ethereum’s foundational network metrics underscore sustained momentum. Daily transactions have surged by 73% over the past three months, while active addresses reached a 12-month high of 670,000. This activity reflects continued user and developer engagement.
The total value locked (TVL) in Ethereum-based decentralized finance (DeFi) protocols has climbed to $86 billion, marking the highest level since 2022. This figure grants Ethereum a dominant 61% share of the overall DeFi market, demonstrating its lead in decentralized applications.
Technically, analysts observe a bull flag pattern formed on the ETH/USD chart. This pattern traditionally suggests the potential for a significant upward breakout. Should the pattern resolve as expected, technical indicators point to a potential price target of $5,000 in the near to medium term.