Ethereum’s rally faces a decisive test at $4.7K as supply and holder metrics flash mixed signals.

Ethereum climbed above $4.2K with calm funding, but resistance at $4.7K remains critical. Stock-to-Flow and MVRV spikes highlight growing volatility and profit-taking risks.

Ethereum [ETH] has surged past $4.2K.

But unlike past rallies in 2020 and early 2024 where Funding Rates overheated above 0.05 and triggered steep corrections, the current breakout is unfolding with calm funding near zero. 

This dynamic signals that the move is largely spot-driven instead of leverage-driven, making the rally appear healthier and less prone to sudden liquidations. 

However, if Funding Rates quickly rise above 0.05, analysts warn it could trigger aggressive selling pressure. 

Therefore, calm funding remains a key signal of sustainability in this current bullish momentum.

ETH has now faced rejection around the +1σ Active Realized Price level near $4.7K, a threshold that historically marks overheated conditions and strong selling pressure. 

This level was last breached in March 2024 and has since proven to be a recurring resistance zone across multiple cycles. 

Although Ethereum’s strong recovery has fueled bullish sentiment, approaching $4.7K raises concerns of near-term exhaustion. 

Thus, the battle around this threshold will likely determine whether Ethereum can extend its rally or face a deeper corrective phase in the weeks ahead.