Ether (ETH) has tested the $2,400 resistance five times over the past month, with each breakout attempt losing momentum near that level. The stalled price action comes as spot Ether exchange-traded funds (ETFs) recorded just $500 million in inflows since March. Ether reserves on Binance exchange climbed by 400,000 ETH, and ETH futures traders also reduced leverage exposure over the past week.
Weak spot ETF demand limits upside
Spot Bitcoin ETFs attracted roughly $4.5 billion in net inflows since March, supporting BTC’s move above $82,000. Ether ETFs recorded only $500 million in inflows during the same time period, leaving ETH without the same level of institutional buying pressure.
That demand gap matters because Ether has repeatedly tested the same resistance zone without fresh spot demand entering the market.
Spot ETH ETF net inflows. Source: SoSoValue
Crypto analyst Darkfost noted that ETH futures activity initially supported the recovery. Ethereum open interest increased by $4.5 billion during its 33% recovery from the February low of $1,736, indicating that traders aggressively added positions as the price rallied.
Binance’s estimated leverage ratio also rose to 0.76 on March 16, one of the platform’s highest readings this year, signaling that traders were using more borrowed capital to increase futures exposure.
The leverage 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 opened ahead of a breakout were closed after ETH slipped back below $2,350.
Ether: estimated leverage ratio on Binance. Source: CryptoQuant
Lower leverage reduces the possibility of sharp liquidations driving the price higher. Darkfost added,
“This is not necessarily a bearish signal. Lower leverage tends to stabilize the market, especially as ETH attempts to break out of its range. Now, for a breakout to materialize, spot demand will need to take over.”
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Ether inflows to Binance raise supply pressure
Market analyst Rei noted a sharp increase in Binance ETH reserves in May. According to the analyst, Binance reserves rose to 3.8 million from 3.4 million ETH. Meanwhile, the total exchange inflows on Binance peaked at 771,689 ETH on Sunday.
Ether exchange reserve on Binance. Source: CryptoQuant
This is the highest level of exchange inflows since Feb. 6, when 1.1 million ETH were recorded on Binance. The ETH deposits arrived while ETH traded around $2,330, consolidating in a tight range between $2,400 and $2,250 since April 14.
Ether exchange inflow. Source: CryptoQuant
The analyst said that large exchange inflows may coincide with traders preparing new positions or taking profits during the price rebound. The added liquidity increases the available supply near the resistance and puts greater pressure on ETH buyers attempting to reclaim $2,400.
For ETH bulls, the immediate task remains turning $2,400 from resistance into support. Without stronger spot demand or a reduction in exchange-side supply, that zone may continue to cap rallies in the near term.
Related: Ether down 35% versus Bitcoin in a year: Will the ETH price downtrend continue?
