- After seven rejections Ethereum broke the $4,000 resistance to convert a long-term resistance area to support and attract new high breakout traders.
- Centralized exchange balances fell to nine year lows indicating high long term holder conviction and a less selling pressure environment surrounding Ethereum.
- Major institutions including Bitmine Immersion, SharpLink Gaming, and Coinbase accumulated billions in ETH, signaling significant smart money inflows and market confidence.
Ethereum has finally broken above the $4,000 level after years of resistance, signaling a possible start of a major upward trend toward new all-time highs.
ETH Breaks Longstanding $4K Barrier
Ethereum faced seven strong rejections at the $4,000 level over nearly four years. Each attempt to breach this zone failed, creating a buildup of market pressure. Merlijn The Trader described the level as a “prison” that limited ETH’s upward potential.
The recent breakout transforms $4,000 from a stubborn resistance into a potential support floor. Traders are entering positions, anticipating a stair-step consolidation above this zone before the next major move.
Market projections suggest that Ethereum could target levels above $10,000 if momentum sustains. Analysts point to the breakout as the release of years of stored buying pressure.
Exchange Supply Decline Indicates Stronger Conviction
Ethereum balances on centralized exchanges have dropped to their lowest point in nine years. Kamil Shaheen highlighted that this trend signals long-term conviction from holders.
A reduction in exchange supply decreases immediate selling pressure, creating favorable conditions for price appreciation. The market now shows a growing preference for off-exchange storage.
CryptoJack added that retail investors are selling while larger entities continue to accumulate. This contrast suggests smart money is positioning ahead of the next potential surge.
Major Institutional Accumulation Underway
Institutional investors are increasingly entering Ethereum. Ted outlined large-scale purchases, including Bitmine Immersion with $5.03 billion and SharpLink Gaming with $2.57 billion in ETH holdings. Other key players include Coinbase, Bit Digital, and ETHZilla.
These acquisitions reflect a rising institutional appetite for Ethereum exposure. Observers note a parallel to early Bitcoin institutional inflows, which fueled historic price rallies.
With billions of dollars entering ETH, market liquidity and long-term valuation could experience notable shifts. Ted emphasized that the question now is how quickly Ethereum could move higher.
