Ethereum Faces Familiar Resistance at $4,700 Level

Ethereum’s latest rally has once again stalled at a price level that has historically acted as a major resistance zone, according to on-chain data.

Active Realized Price and Investor Behavior

Analytics firm Glassnode highlighted that the rejection occurred at the +1 standard deviation level of Ethereum’s Active Realized Price model. Unlike the standard Realized Price, which accounts for the entire supply, this version excludes inactive or lost coins, focusing instead on the active investor base.

The Active Realized Price represents the average cost basis of active holders. When ETH climbs above this level, it signals that the average investor is sitting on unrealized gains. The +1 SD threshold—currently near $4,700—has repeatedly served as a point where profits become significant enough to trigger widespread selling.

Ethereum briefly broke through this resistance in March 2024, but that surge proved short-lived as profit-taking pressured the market. Last week’s rejection follows the same pattern, with ETH falling nearly 10% after touching the threshold.

ETF Inflows Boost Market Momentum

Despite the resistance, Ethereum’s ecosystem has recently seen encouraging signs from institutional flows. Glassnode noted that Ethereum spot ETFs in the United States recorded their strongest week since launch, registering net inflows of 649,000 ETH. This surge coincided with the rally to above $4,700, underscoring the influence of ETF demand on price momentum.

Current Market Outlook

At the time of writing, Ethereum is trading near $4,360, reflecting a modest 2% gain over the past week. While ETFs suggest strong institutional appetite, the $4,700 barrier remains a critical test for ETH’s ability to sustain a breakout in this market cycle.