Ethereum Price Prediction: Can ETH Hit $4,000 Amid Institutional Inflows and Bullish Technical Signals?

Ethereum is showing strong bullish momentum, approaching key resistance levels that could determine its next move.

Ethereum Price Prediction: Will ETH Surpass $4,000 amid rising institutional demand and technical momentum?

The cryptocurrency has gained traction, climbing to $3,250 after bouncing from the psychological support of $3,000. This upward movement comes amid increasing institutional interest and heightened whale activity, reinforcing a potential breakout scenario.

However, resistance at around $3,231 could impact short-term price action. If Ethereum clears this level, it may set its sights on $3,730, with a broader target of $4,000. On the other hand, failure to break above could trigger a retest of $3,000 or lower support levels near $2,810.

Ethereum Faces Key Resistance as Institutional Demand Increases

Ethereum recently rebounded from $3,000, marking a 6.33% increase in the past few days. The cryptocurrency attempted to break past a descending trendline resistance but struggled to maintain upward momentum.

ETH/USD daily chart. Source: Trading View

Technical indicators provide mixed signals. The Relative Strength Index (RSI) remains at 46, indicating bearish momentum as it stays below the neutral 50 level. Meanwhile, the Moving Average Convergence Divergence (MACD) shows convergence, signaling indecision among traders. The True Strength Index (TSI), however, crossed positively, suggesting a possible bullish reversal.

IntoTheBlock data indicates that the immediate resistance zone between $3,264 and $3,342 holds around 6.26 million ETH. A breakout from this range could push Ethereum toward Fibonacci retracement targets of $3,509 and $4,079. On the downside, failure to sustain momentum may lead to another decline, with $3,000 serving as a strong support level.

Institutional Investors Add to Their Ethereum Holdings

Institutional demand for Ethereum is back, with big players like BlackRock, Fidelity, and Grayscale increasing their exposure. Data shows over $100 million flowed into Ethereum products in late January. BlackRock led the inflows with $79.86 million, Fidelity with $15.41 million, and Grayscale with $12.79 million.

ETH ETF flows are increasing. Source: Soso value

The Grayscale Ethereum Trust sold $40.29 million, so net inflows were $67.77 million. Total assets in Ethereum ETFs are now $11.78 billion, but recent data shows a net outflow of $4.70 million so it’s mixed news for ETH.

Whales Are Buying Ethereum, Suggesting Long-Term Confidence

On-chain data shows whales are buying Ethereum; they bought over 100,000 ETH during the recent dip. A big whale bought 1,531 ETH worth $5.01 million at $3,277. This shows strong conviction in Ethereum’s long term. Historical data shows big whale buys often precede big price moves.

Source: X

If this continues, Ethereum could see sustained buying pressure and a breakout to higher targets. Ethereum’s network activity is growing, and active addresses have risen by 37% in the last few months to 670,000. This is in line with the price rise and shows increasing user engagement.

Ethereum’s transition to Proof-of-Stake appealed to both institutional and retail investors. Staking activity on the network is still strong, so the fundamentals are bullish.

Ethereum Community Votes Danny Ryan to Lead Foundation

On votedannyryan.com, an informal poll had community members vote for former Ethereum researcher Danny Ryan to be the new executive director of the Ethereum Foundation. Ryan is known for his work on the transition of Ethereum to Proof of Stake.

Since the poll went live, 587 wallets with over 51,000 ETH (worth ~$162m) have participated. 99% of those wallets have voted for Ryan. You can connect your wallet and vote gas-free, your vote is weighted by your ETH balance. The poll has no official impact on the Ethereum Foundation leadership but is a gauge of community sentiment on the direction of the organization.

The poll comes as the Foundation is under fire and there is a call for change at the top. Ryan has thanked the community for their support and Aya Miyaguchi for her work as executive director. Vitalik Buterin has also defended Miyaguchi and praised other researchers in the Foundation.

Ethereum Price Outlook: Analysts Say Ethereum Could Reach $4,000

Ethereum faces a big resistance zone between $3,264 and $3,342, which contains 6.26 million ETH. Breaking above this could push the price to the next resistance levels of $3,509 and $4,079. Analysts say $4,000 is a key psychological level that if reclaimed could lead to new all-time highs.

Can the ETH price clear the key level? Source: X

Market analyst Ted tweeted that Ethereum’s higher lows on the longer timeframes look bullish. He says $4,000 is the key level and if momentum holds, Ethereum could reach $9,000 to $10,000 in the next few months.

Ethereum’s price will depend on if it can break out of its current resistance zone. Institutional inflows, whale accumulation, and technical factors suggest it could be. Traders and investors will be watching the next price action to see where Ethereum goes for the next few months.