Ethereum Faces Crucial Resistance Near $2,560

Ethereum has seen a recovery above $2,500 but faces significant resistance near $2,560. This critical level will determine whether Ethereum breaks out or consolidates its price. Bitcoin ETFs have attracted nearly $1 billion in inflows each month, while Ethereum's ETF inflows remain modest.

The tight supply of Ethereum has been tightened by the recent drop of over 116,000 ETH (~$300 million) from exchange balances. This sets the stage for a possible price surge towards $2,750, $3,400, and even $4,750 if bullish momentum builds.

However, network activity measured by daily active addresses has declined since August, indicating mixed signals for sustained growth.