ETH traders predict lower support retest before breakout to $4K

Ether (ETH) has been on a wild ride, gaining 57% over the past month. But the party might be hitting a pause button as consistent selling near the $4,000 mark is putting a cap on the price upside. Independent market analyst Adam has pointed out the massive sell walls in this zone, suggesting that ETH's momentum could stall until these are either filled or pulled.

The recent price surge aligns with the launch of multiple Ether treasuries. Since June, Bitmine Immersion Tech and SharpLink Gaming have gone all-in, acquiring 566,800 and 360,800 ETH, respectively. Adding fuel to the fire, Ethereum spot ETF inflows have skyrocketed, with Farside Investors reporting a whopping $1.84 billion in the last 7 days, pushing the total net assets for spot ETH ETFs beyond $20.6 billion.

Despite this institutional frenzy, the stocks of these companies haven't been spared from the market's volatility. SharpLink Gaming’s SBET and Bitmine Immersion Tech’s BMNR have seen their stocks tumble by 36.4% and 14.52% over the past week, albeit after impressive rallies of 565% and 381% over the last three months.

From a technical perspective, ETH's chart is painting an interesting picture with a confirmed inverse-head-and-shoulders pattern, hinting at a potential target of $4,300. However, the neutral funding rates suggest that traders are playing it safe, hesitant to leverage up around a multi-year resistance level.

Market watchers like Michael Van de Poppe are betting on a brief pullback to the $3,500-$3,300 zone before ETH makes its next big move past the $4,000 resistance. It seems like the market is setting up for a classic 'buy the dip' scenario.

Disclaimer: This article is not financial advice. Trading and investing come with risks, so do your own research before making any decisions.