Over the past month, Ether (ETH) has tested the $2,400 resistance level five times, with each breakout attempt losing momentum near that level. Price action stalled as spot exchange-traded funds (ETFs) recorded just $500 million in inflows since March. Ether reserves on the Binance exchange increased by 400,000 ETH, and ETH futures traders also reduced their leverage exposure over the past week.
A faint spot in ETF demand limits growth
Spot Bitcoin ETFs have attracted approximately $4.5 billion in net inflows since March, supporting BTC’s move above $82,000. Ether ETFs recorded only $500 million in inflows over the same period, leaving ETH without the same level of institutional buying pressure.
This demand gap matters because Ether has repeatedly tested the same resistance zone without modern spot demand entering the market.
ETH ETF net inflows spot. Source: SoSoValue
Darkfost cryptocurrency analyst excellent that ETH futures activity initially supported the recovery. Ethereum’s open interest rose by $4.5 billion during a 33% rebound from February’s low of $1,736, indicating that investors were aggressively adding positions as the price rose.
Binance’s estimated leverage ratio also rose to 0.76 on March 16, one of the platform’s highest readings this year, signaling that investors were using more borrowed capital to augment futures exposure.
Since then, the leverage trend has reversed near the resistance level. Binance’s estimated leverage ratio dropped to 0.57 on Sunday. The analyst explained that long positions opened before the breakout were closed after ETH fell below $2,350.
Ether: Estimated leverage ratio on Binance. Source: CryptoQuant
Lower leverage reduces the possibility of violent liquidations that will push the price higher. added by Darkfost,
“This is not necessarily a bearish signal. Lower leverage tends to stabilize the market, especially when ETH tries to break out of its range. Now, for a breakout to materialize, spot market demand will have to take over.”
Related: Savvy Investor Bets on Ethereum as Artificial Intelligence Agents Drive Demand for Tokenization
Ether inflow into Binance increases supply pressure
Rei market analyst excellent a edged augment in Binance ETH reserves in May. According to the analyst, Binance’s reserves increased to 3.8 million from 3.4 million ETH. Meanwhile, total exchange inflows on Binance reached a high of 771,689 ETH on Sunday.
Ether exchange reserve on Binance. Source: CryptoQuant
This is the highest level of exchange inflows since February 6, when 1.1 million ETH was recorded on Binance. ETH deposits arrived while ETH was trading around $2,330, consolidating in a narrow range between $2,400 and $2,250 since April 14.
Influx of ether exchange. Source: CryptoQuant
The analyst said enormous currency inflows could coincide with traders preparing modern positions or taking profits during a price rebound. The additional liquidity increases available supply near resistance and puts more pressure on ETH buyers trying to reclaim $2,400.
For ETH bulls, the immediate task remains to convert $2,400 from resistance to support. Without stronger spot demand or a reduction in supply on the exchange, this zone may continue to limit growth in the near term.
Related: Ether down 35% vs. Bitcoin in a year: Will the downtrend in ETH prices continue?
