ETH Set for Consolidation Before Next Leg Higher, Analysts Say

Key Insights:

• ETH price drops 5.31% in 24 hours, signaling short-term weakness.
• Whale and institutional activity shows aggressive accumulation of Ethereum.
• Spot ETH ETFs record $2.85B in weekly inflows, the highest on record.

Ethereum currently trades at $4,404.66, reflecting a 5.31% decline over the past 24 hours. This marks a potential shift toward short-term consolidation as momentum cools across the board.

Technical analysis on the 4-hour timeframe shows bearish momentum building. The price action has formed a lower high and now targets the support zone around $3,880.

ETH/USD | Source : TradingView

MACD indicators are crossing into bearish territory while the Alligator moving average is curling downward. This suggests a downward trajectory may continue in the near term unless bulls reclaim recent highs.

The chart also shows the break of the short-term structure and a projected drop toward the highlighted demand zone. Analysts anticipate this level to act as a springboard for the next bullish wave.

Despite the current decline, market sentiment shows resilience. Michaël van de Poppe indicated that the market failed to break resistance and is now likely to consolidate before heading higher.

Whales, Institutions, and ETFs Push for Long-Term Strength

Whale positions on Hyperliquid are mostly long, with over 80% of large traders betting on an ETH price increase. Despite recent drops, these positions reflect bullish conviction from high-value players.

Wallets holding between $1M to $14.5M in ETH remain long with minimal unrealized losses, signaling strategic accumulation. At the same time, institutional activity has surged to record-breaking levels.

Ethereum spot ETFs registered $2.85B in inflows this week, their largest on record according to SoSo Value. This signals growing interest from institutional investors seeking long-term exposure to Ethereum.

Moreover, BlackRock purchased $2.32B worth of ETH this week, far exceeding its $887M Bitcoin investment. Other institutions like Bitmine and SharpLink Gaming have also aggressively added to their ETH holdings.

Exchange reserves have dropped to record lows, with only 18.5 million ETH remaining across centralized platforms. This ongoing supply crunch could push prices higher when demand intensifies.

Market performance data confirms growing traction, with Ethereum posting a 4.33% weekly gain despite the 24-hour correction. While short-term indicators suggest caution, long-term fundamentals appear increasingly bullish.