Ether Price Stalls Below $2,400 Amid Weak ETF Inflows and Rising Exchange Reserves
Ethereum (ETH) prices remain constrained below the $2,400 resistance level after five failed breakout attempts in the past month. This stagnation is primarily driven by two key factors: sluggish inflows into spot Ether exchange-traded funds (ETFs) and a significant increase in Ether deposits on the Binance exchange. Since March, spot Ether ETFs have recorded only $500 million in net inflows, significantly lagging behind Bitcoin ETFs, which limits institutional buying pressure. Concurrently, Binance reserves have surged by 400,000 ETH to reach 3.8 million, indicating heightened supply pressure as traders potentially prepare to sell or take profits. Additionally, leverage among futures traders has decreased, with Binance’s estimated leverage ratio dropping from 0.76 to 0.57. While this reduction in leverage may stabilize the market by preventing sharp liquidations, analysts note that a sustained breakout above $2,400 will require stronger spot demand to counteract the increased available supply on exchanges. Without renewed institutional interest or a decrease in exchange-side liquidity, the $2,400 zone is expected to continue capping Ethereum's price rallies in the near term.
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Ether Price Stalls Below $2,400 Amid Weak ETF Inflows and Rising Exchange Reserves
Ethereum (ETH) prices remain constrained below the $2,400 resistance level after five failed breakout attempts in the past month. This stagnation is primarily driven by two key factors: sluggish inflows into spot Ether exchange-traded funds (ETFs) and a significant increase in Ether deposits on the Binance exchange. Since March, spot Ether ETFs have recorded only $500 million in net inflows, significantly lagging behind Bitcoin ETFs, which limits institutional buying pressure. Concurrently, Binance reserves have surged by 400,000 ETH to reach 3.8 million, indicating heightened supply pressure as traders potentially prepare to sell or take profits. Additionally, leverage among futures traders has decreased, with Binance’s estimated leverage ratio dropping from 0.76 to 0.57. While this reduction in leverage may stabilize the market by preventing sharp liquidations, analysts note that a sustained breakout above $2,400 will require stronger spot demand to counteract the increased available supply on exchanges. Without renewed institutional interest or a decrease in exchange-side liquidity, the $2,400 zone is expected to continue capping Ethereum's price rallies in the near term.
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