- Ethereum is holding above support as $2,500 caps upside in repeated rejections.
- ETH’s market cap stays well above TVL, reinforcing DeFi’s strength and trust.
- BlackRock adds $40.7M in ETF inflows, backing Ethereum’s bullish price base.
Ethereum is reacting sharply at key resistance levels while maintaining structural strength above critical support zones. Price action and valuation metrics confirm Ethereum’s dominance in DeFi despite recent rejection near the $2,500 mark.
Ethereum Holds Range Between Resistance and Breakout Base
Ethereum has rejected $2,516.7 on multiple weekly closes, forming a resistance zone that mirrors its 2024 rejection. The current setup closely resembles a failed breakout from February 2024, both in structure and candle pattern. Ethereum sits at $2,427.4, positioned between the $2,516.7 ceiling and $2,196.9 breakout base.
Assessing price structure on the weekly chart, Ethereum tested $2,600 after rallying from below $2,000 in May 2025. According to the detailed analysis by Rekt Capital, Ethereum failed to break the resistance, forming a wick nearly identical to the 2024 top. Ethereum remains trapped in a familiar range, confirming strong price memory in this area.
Price sits above the $2,196.9 support, which served as a base for the latest upside move. Ethereum traders are closely watching this range as the price compresses between the breakout zone and resistance. Support zones remain anchored near $2,100–$2,200, previously defended during sharp downtrends.
Ethereum’s Market Cap Premium Over TVL Remains Intact
While Ethereum reacts at resistance, its broader value proposition remains intact through valuation metrics and on-chain dominance. The fully diluted market cap of Ethereum has remained above total value locked (TVL) since 2020. This confirms Ethereum’s position as a capital foundation layer.
Source: (X)
Ethereum’s market cap peaked above $600 billion in late 2021 while TVL reached nearly $200 billion at its highest. Even during 2023 drawdowns, Ethereum never traded below the TVL value, maintaining a bullish market premium. Multiple rebounds have occurred where valuation has decoupled from locked capital.
Ethereum’s TVL is backed by stablecoins, RWAs, and other on-chain assets held within DeFi protocols. Despite pressure in 2024, Ethereum formed higher lows in both valuation and TVL, confirming growing capital efficiency. This divergence highlights Ethereum’s ability to secure long-term network value.
Ethereum currently trades below the assets it secures, reinforcing accumulation signals tied to structural investor confidence. Arrows on the chart reflect previous valuation rebounds from TVL parity, confirming market preference. Ethereum continues to price in future demand for asset hosting, not just the current capital locked.
ETF Inflows and Institutional Accumulation Signal Confidence
BlackRock continues to accumulate Ethereum through spot ETF exposure, fueling deeper market conviction. Inflows reached $40.7 million yesterday alone, reflecting institutional confidence during technical pullbacks. Ethereum’s structural setup remains firmly bullish as capital continues rotating into long-term positions.
