Ethereum (ETH) is testing key resistance levels as institutional investment flows back into the market through spot ETFs. On March 4, Ethereum spot ETFs recorded a significant $130.08 million in net inflows, marking the largest single-day institutional buying spree since early February. This surge in capital was led by Grayscale's Ethereum Trust, which alone attracted $99.51 million.
The influx of institutional money coincides with a notable technical breakout attempt. Ethereum price is currently consolidating within an ascending channel, trading near $2,129.01 after testing the upper Keltner Channel resistance at $2,145. Analysts are now eyeing a potential breakout towards the $2,200 level, which would represent a 25% recovery from multi-year lows below $1,800 observed recently.
Market data reveals a fundamental shift in sentiment. Open interest in Ethereum derivatives has surged by 15.47% to $28.71 billion, while trading volume exploded by 34.74% to $77.96 billion. More importantly, on-chain metrics from CryptoQuant show that net taker volume—which measures the imbalance between buyers and sellers in derivatives markets—has flipped positive after nearly two months in negative territory. This indicates that "sellers may be losing control" and aggressive selling pressure is fading.
"Historically, shifts from prolonged negative taker pressure toward positive territory often precede short covering rallies and liquidity-driven rebounds, particularly after periods of forced selling," noted CryptoQuant analyst MorenoDV_.
The return of U.S. investor demand is further confirmed by the Coinbase Premium Index for Ether, which has risen to levels last seen in December 2025. This metric turning positive after several months suggests renewed buying pressure from U.S.-based investors, which could accelerate the rally.
Analysts are setting key levels for the ongoing move. Trader Crypto Patel emphasizes that the $1,750 support level must hold for "bulls to stay in control," with an upside target of $2,500-$2,600. Analyst Bren suggests that a "larger bounce above $2,200 is likely," while others believe a successful retest of the $2,100 support could open a path toward $3,400 or higher. A daily close above $2,100 is seen as critical to reviving hopes for a recovery toward the 50-day simple moving average at $2,381.
