Ether Struggles Below $2.4K As Spot ETH ETF Demand Declines
Ether (ETH) has tested the $2,400 resistance five times in the past month, with each attempt losing momentum near that level. The stalled price action comes as ethereum exchange-traded funds (ETFs) have recorded $500 million in inflows since March. Ether reserves on the Binance exchange increased by 400,000 ETH, and ETH futures traders also reduced capacity exposure last week.
A weak position limits ETF demand upwards
Spot Bitcoin ETFs have attracted nearly $4.5 billion in net inflows since March, supporting BTC's move above $82,000. Ether ETF registered With only $500 million in revenue during the same period, ETH has been able to survive without the same institutional buying pressure.
That difference in demand is important because Ethereum repeatedly tested the same resistance zone without new spot demand entering the market.
Spot ETH ETF Net Earnings. Source: SoSoValue
Crypto analyst Darkfost It is mentioned ETH futures movement initially supports the recovery. Ethereum open interest increased 33% to $4.5 billion during the recovery from the February low of $1,736, indicating that traders increased positions significantly as the price rose.
Binance's estimated leverage ratio rose to 0.76 on March 16, one of the platform's highest readings this year, indicating that traders are using more borrowed capital to increase futures exposure.
The consumption trend has since reversed near the resistance level. Binance's estimated leverage ratio dropped to 0.57 on Sunday. The analyst explained that long positions were closed after ETH pulled back below $2,350.
Ether: The estimated consumption ratio on Binance. Source: CryptoQuant
Low utilization will result in higher rates, thus reducing the likelihood of sharp liquid formation. Darkfost added,
“This is not necessarily a bearish sign. Lower leverage tends to stabilize the market, especially when ETH tries to break out of the range. Now, for a breakout to materialize, spot demand needs to be controlled.”
Related: Veteran Investors Play on Ethereum as AI Agents Boost Demand for Token
Ether flows into Binance increase supply pressure
Market analyst Rei It is mentioned Big increase in Binance ETH stock in May. According to the analyst, Binance's reserves increased from 3.4 million ETH to 3.8 million. Meanwhile, the total turnover on Binance topped 771,689 ETH on Sunday.
Ether exchange backup on Binance. Source: CryptoQuant
This is the highest exchange revenue level since February 6, when 1.1 million ETH was recorded on Binance. ETH deposits have been consolidating in a tight range between $2,400 and $2,250 since April 14, when ETH traded around $2,330.
Ether exchange income. Source: CryptoQuant
The analyst said that high foreign exchange earnings during price corrections may coincide with the time when traders prepare new positions or take profits. The increased liquidity will increase supply near the resistance and put more pressure on ETH buyers trying to regain $2,400.
For ETH bulls, the quick work remains to turn $2,400 from resistance to support. Without strong demand for space or a reduction in exchange-side supply, that zone is likely to continue to see gains in the near term.
Related: Ether Down 35% in One Year Against Bitcoin: Will ETH's Price Continue to Fall?
