Ethereum price continues to trade above a rising support trendline, keeping bullish momentum intact as large holders and institutional flows tilt in favor of the bulls.
The ascending trendline, which has guided price action since May, connects higher lows formed in June, November, and December. Analysts say holding above this structure keeps a potential push toward the $4,000 level firmly on the table.
Momentum indicators support upside case
Technical indicators are reinforcing the bullish setup.
On the daily chart, Ethereum has formed a bullish divergence, with the Moving Average Convergence Divergence (MACD) trending toward the zero line and the Relative Strength Index (RSI) climbing back above neutral territory. Together, these signals suggest fading downside pressure and growing momentum to the upside.
Analysts note that as long as ETH remains above the rising trendline, buyers retain control of the broader structure.
BitMine and long-term holders tighten supply
A key driver behind Ethereum’s resilience has been aggressive accumulation by long-term holders.
BitMine has significantly increased its Ethereum holdings over the past 30 days, bringing its ETH treasury to what the company describes as the largest in the industry. Blockchain data also shows that whale addresses holding large ETH balances have been steadily accumulating since late December.
This behavior reduces liquid supply on exchanges, a dynamic that historically strengthens price during periods of renewed demand.
Spot ETH ETF flows flip positive
Institutional sentiment has also shown signs of improvement.
After weeks of net outflows, spot Ethereum exchange-traded funds have recently flipped back to net inflows, according to fund flow data. Market observers view the reversal as an early signal that institutions are re-engaging with ETH exposure following the recent consolidation phase.
Sustained ETF inflows could reinforce the bullish structure by absorbing sell pressure and adding depth to demand.
Risks remain below key support
Despite the constructive setup, analysts caution that downside risks have not disappeared.
A decisive breakdown below the ascending trendline would weaken the bullish thesis and could trigger a broader shift in market sentiment, potentially opening the door to deeper corrective moves.
For now, however, Ethereum’s ability to hold support alongside growing accumulation and improving ETF flows keeps the $4,000 target in focus.
Bigger picture tailwinds
Beyond technicals, Ethereum’s expanding role in real-world asset tokenization, payments infrastructure, and institutional settlement systems continues to strengthen its long-term investment case.
As these use cases mature and capital flows return, analysts say Ethereum remains well positioned to outperform if broader crypto market conditions stabilize.
Disclosure: This article is for informational purposes only and does not constitute investment advice.
