If Ethereum Can’t Break the $4,100 Resistance, How Deep Will This Correction Go?

• Ethereum’s price is in a correction, trading near $3,500 after failing to break resistance
• The key “make-or-break” resistance level for Ethereum remains at $4,100, analysts say
• On-chain data shows whales and retail investors were accumulating ETH during the recent dip

In a new X post, crypto analyst Michaël van de Poppe explains the importance of the $4,100 resistance level for Ethereum, stating that ETH failed to reach the target resistance zone, leading to a roughly 15% dip.

He notes that the $4,100 level remains the key barrier that Ethereum must break to reach new all-time highs.

Several days ago, van de Poppe predicted a fairly normal correction until ETH touches $4,100. When ETH did not dip deeper, he shifted to expecting an upward move instead.

At the moment, Ethereum’s price is hovering around $3,600. It looks like there isn’t much buying interest, and the price keeps hitting a wall below $4,100. The rally is stalling, with some people selling to lock in their profits. To get the price moving up again, Ethereum will likely need to break decisively above this level by way of high trading volume.

On-Chain Data shows whales are buying this dip

While the price chart looks weak, a look at on-chain data reveals a different story. It appears the smallest and largest investors are using this dip as a buying opportunity. 

Data shows that whale and retail wallets have increased their Ethereum holdings by about 1.8% over the last 30 days. 

At the same time, medium-sized investors are selling some of theirs, which suggests that the investors with the highest long-term conviction are growing more confident, while shorter-term players may be taking profits.

Institutional participation boosts ETH

Interestingly, the data from several days ago shows that Ethereum spot ETFs have seen 17 consecutive days of inflows totaling over $5 billion. Simultaneously, institutional buyers like World Liberty Financial and SharpLink Gaming continue scaling their ETH holdings.

This could bode well for ETH because the price may rise as it is being driven by strong inflows into ETFs and consistent institutional accumulation. 

Furthermore, corrections in the gold market and a broader risk-on macroeconomic environment might provide additional strength for Ethereum and other altcoins. Still, the price could easily change if there’s uncertainty in the larger economy, especially with what the Fed does with interest rates.

Regardless, van de Poppe’s chart analysis shows that Ethereum’s failure to reclaim the key $4,100 price level prevented it from sustaining bullish momentum and triggered a limited price correction. Where it will go from here, we will yet have to see.