Ethereum price has been step by step rising over the past few sessions and is showing a slow but regular recovery. ETH struggled to draw sustained investor support, limiting upside momentum.
This lack of conviction is making it increasingly difficult for the altcoin king to succeed in the long-awaited $4,000 mark, whilst overall market conditions improve.
Ethereum whales proceed to say no
Whale activity reflects growing caution amongst major Ethereum holders. Whale address tracking data shows a decline in 30-day change, indicating lower participation from this influential cohort. Fewer whales holding or adding to their positions often signals weaker confidence in a short-term price increase.
This decline suggests that whales could also be reassessing their exposure given limited growth prospects. Large holders typically accumulate in periods of strong conviction. Its current decline suggests a bearish short- to medium-term outlook, adding pressure to Ethereum's ability to sustain a powerful rally without renewed demand.
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Number of Ethereum whale addresses. Source: Glassnode
Macro indicators also point to headwinds for Ethereum price recovery. ETH spot ETFs ended 2025 in decline, recording a complete of $72 million in net outflows. This performance reflects cautious institutional sentiment at a time of general market uncertainty.
At the beginning of the brand new yr, participation remained subdued. Last month, ETH spot ETFs only saw inflows five times. This partial decoupling from institutional allocators limits liquidity support and reduces the likelihood of a sustained upward move with out a clear macroeconomic catalyst.
Ethereum ETF flows. Source: SoSoValue
ETH price is facing a critical supply zone
Ethereum price has shown early signs of strength in 2026. ETH recently reclaimed the $3,000 mark, marking the primary break above this resistance in 10 days. This move represents a psychological milestone, but is just a primary step towards the broader goal of $4,000.
The next major hurdle is 32% above current levels, with ETH trading near $3,014. Price motion stays confined to a descending wedge pattern. A confirmed breakout would require a decisive move above $3,131, which could shift momentum and attract latest buyers.
It can be difficult to succeed in this level attributable to the high overhead supply. The cost base distribution heatmap shows roughly 2.83 million ETH gathered between $3,151 and $3,172. This zone acts as resistance as many holders may sell to interrupt even once the value approaches it.
Without strong demand, Ethereum is prone to consolidate below $3,131. This rangebound move could proceed as sellers absorb rallies and buyers hesitate. Such consolidation reflects a market waiting for confirmation relatively than aggressively pursuing higher valuations.
The invalidation of the bearish thesis is dependent upon renewed whale and macro support. Significant inflows into Ethereum via spot or ETF markets would signal restored confidence. Sustained institutional participation could help ETH break $3,131 and extend gains towards $3,287, restoring momentum.
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Article source: beincrypto.com
The post Ethereum price rises above $3,000, but here's why $4,000 can be a challenge appeared first on Crypto Adventure.
