Ethereum Stalls Near Resistance as BlackRock ETH ETF Draws $132M Inflows
Ethereum (ETH) is at a crossroads.
Despite a recent rally to multi-month highs, momentum on the daily chart is beginning to fade. Indicators are softening, and price action is stalling just below strong resistance levels.
However, institutional sentiment appears to be telling a different story—BlackRock’s spot Ethereum ETF, ETHA, recorded $132 million in net inflows yesterday, making it the only digital asset fund to post gains.
This surge in institutional interest could serve as a critical backstop—or even a launchpad—for ETH if it can overcome mounting sell pressure in the short term.
Bullish Momentum Weakens at Key Levels
On the 1-day chart, Ethereum’s price recently reached above $3,800 but failed to secure a decisive break. The RSI remains elevated, but has pulled back slightly from overbought levels, signaling buyer fatigue. Meanwhile, the MACD histogram continues to shrink, indicating waning bullish momentum and the possibility of a short-term trend reversal or consolidation.
Daily chart for WETH/USD (Source: GeckoTerminal)
Despite these headwinds, ETH is still trading above its 9-day and 20-day exponential moving averages, both of which continue to slope upward. These moving averages provide dynamic support, but the flattening price action suggests a tug-of-war is underway between short-term profit-taking and longer-term bullish conviction.
Ethereum Order Book Reflects a Standoff
Looking at the order book, Ethereum is navigating through a dense liquidity zone. Multiple ASK walls between $3,789 and $3,795 are acting as immediate resistance, capping prices from moving higher. Clearing these walls could push ETH toward the next target at $3,865, and eventually $3,894 if bullish momentum reignites.
On the support side, strong BID walls at $3,783 and $3,769 are currently preventing a sharper decline. If these levels break, ETH could quickly slip to $3,748 or even test deeper support at $3,628.
BlackRock’s Inflows Show Underlying Confidence
While the technical picture shows indecision, the macro sentiment is bullish. BlackRock’s spot ETH ETF (ETHA) logged $132 million in net inflows yesterday, according to the latest data—making it the only US spot ETH ETF fund across the digital asset landscape to finish the day in the green.
Daily ETH ETF inflow data (Source: Farside Investors)
That is not just a number—it’s a signal. Inflows of this size indicate growing institutional confidence in Ethereum’s long-term value proposition, especially as Ethereum-based ETFs begin to carve out a role in diversified portfolios.
The contrast between softening short-term indicators and strong ETF inflows highlights a disconnect between technical caution and fundamental optimism. Traders would be wise to watch how this plays out: ETF demand can often precede or even catalyze major price moves.
Ethereum Trading Strategy Outlook
Bullish Case: If ETH can clear the ASK wall cluster and close above $3,795 with strong volume, it could trigger a breakout rally toward $3,865 or even $3,894. Entry opportunities could be found just above the breakout level, with stop-losses placed under $3,769 to manage risk.
Bearish Case: A rejection from resistance or breakdown below $3,769 could open short setups targeting $3,628, and potentially $3,469 if sentiment sours. Stops for short positions should be placed just above $3,795 to avoid getting trapped in a squeeze.
For both scenarios, traders should monitor ETF inflow data and order book changes closely. Any surge in institutional buying or large-scale bid absorption could dramatically shift the balance.
Conclusion
Ethereum’s chart suggests caution in the short term—but beneath the surface, institutional appetite is building. BlackRock’s $132 million ETHA inflow amid sector-wide outflows reinforces Ethereum’s unique appeal to large investors. Whether this demand is enough to push ETH through resistance remains to be seen, but one thing is clear: the battle between traders and institutions is heating up.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
