Ethereum remains constrained under the critical $4,000 price threshold as coordinated whale transactions and liquidation events create persistent selling pressure. Repeated price rejections at this psychological barrier have triggered cascading liquidations exceeding $100 million within a 24-hour period, signaling strong resistance from institutional holders.
Market dynamics reveal conflicting signals: while nearly $1.9 billion has entered Ethereum ETFs indicating institutional interest, exchange reserves have dropped by 200,000 ETH. Simultaneously, the cohort of large holders appears to be distributing assets, with 100 wallets holding 1,000+ ETH exiting the network just last week.
Macroeconomic headwinds compound these technical challenges, with investors awaiting key policy decisions including the Federal Reserve’s next rate announcement. This uncertainty temporarily eased Bitcoin’s market dominance to 61.25%, allowing Ethereum to post a modest 1.4% intraday gain against BTC.
Analysts observe that absent renewed accumulation by major holders, Ethereum’s consolidation phase appears poised to extend further. Sustaining momentum beyond the $4,000 level requires either significant structural demand shifts or favorable macroeconomic catalysts.