Ethereum retest eyes breakout as $4,600 blocks bullish

Key Insights:

• ETH faces crucial resistance at $4,600 after recent rejection, with breakout potential if resistance is reclaimed.
• Analyst compares current setup to 2020–2021 rally, projecting further gains for ETH.
• Ethereum ETFs have seen $10 billion in inflows since July, signaling institutional confidence and market interest.

Ethereum (ETH) is trading in a narrow range as it faces a crucial retest after being rejected at $4,600. Analysts remain divided on whether the current setup will lead to a breakout or a deeper retracement.

Historical Pattern Points to Breakout Potential

Technical analyst Merlijn The Trader has compared Ethereum’s present structure to its 2020–2021 rally. According to his chart analysis, Ethereum recently broke a descending trendline and is now retesting resistance near $3,650.

He explained that this mirrors the past cycle, when Ethereum retested Previous resistance before moving toward new highs. The analyst emphasized that the retest is where legends buy, and the breakout is where fortunes are made.

The analysis suggests that Ethereum’s structure could support another leg higher if the resistance is reclaimed. With ETH currently trading just above $4,300, the projection suggests a potential continuation to all-time highs and beyond during the 2024-2025 cycle.

Short-Term Correction Risks After $4,600 Rejection

Meanwhile, another analyst Ted, pointed out that Ethereum failed to hold above $4,600. Based on his 4-hour chart, Ethereum’s momentum is weakening and could lead to a correction toward $4,280.

Ted noted that if this support fails, the next downside target is near $3,924. A reclaim of $4,610 is needed to confirm bullish continuation. The conditional outlook suggests that buyers must defend support to avoid further retracement.

This perspective introduces caution for traders, as Ethereum’s recent rejection has left the market at a delicate stage. At the time of writing, Ethereum is priced at $4,394.62. The 24-hour trading volume is $47 billion, with a modest gain of 0.17% in the same period.

Institutional Demand Pushes ETF Inflows Higher

Therefore, while technical indicators show mixed signals, institutional flows remain strong. Analyst CryptoGoos stated that Ethereum exchange-traded funds (ETFs) have attracted $10 billion in inflows since July.

According to data from Bloomberg Intelligence, total ETF inflows reached $13.62 billion. Early outflows of $0.69 billion in August and $0.55 billion in October were reversed as demand accelerated, literally going parabolic.

This surge in inflows signals growing confidence from institutional participants, with capital entering Ethereum at an increasing pace. The combination of technical retests and strong institutional flows leaves Ethereum at a pivotal moment.