Ethereum demonstrated renewed bullish momentum as its price rallied 4.09% to break above $3,860, successfully defending the critical $3,700 support level. This upward movement signals improved short-term strength in the market.
The surge coincides with robust institutional interest, evidenced by Ethereum spot ETFs recording 16 consecutive days of positive net inflows amounting to $452 million. This sustained institutional participation underscores confidence in the asset.
However, cautionary indicators temper the bullish outlook. Ethereum’s holder accumulation ratio recently dipped below 50%, suggesting a slowdown in new buying activity despite the price gains. Concurrently, a historically significant 98.1% of Ethereum’s total supply now sits in profit territory.
Such elevated profit levels frequently precede local price tops and potential pullbacks as holders may look to secure gains. Technical analysis confirms mixed signals, with the Chaikin Money Flow (CMF) indicating neutral buying pressure. The Moving Average Convergence Divergence (MACD) suggests possible resistance near the $4,100 level if the rally continues.