diff --git a/cmd/geth/config.go b/cmd/geth/config.go
index 5cd17e2f4c..c63933f658 100644
--- a/cmd/geth/config.go
+++ b/cmd/geth/config.go
@@ -39,6 +39,7 @@ import (
 	"github.com/ethereum/go-ethereum/eth/catalyst"
 	"github.com/ethereum/go-ethereum/eth/ethconfig"
 	"github.com/ethereum/go-ethereum/internal/flags"
+	"github.com/ethereum/go-ethereum/internal/telemetry/tracesetup"
 	"github.com/ethereum/go-ethereum/internal/version"
 	"github.com/ethereum/go-ethereum/log"
 	"github.com/ethereum/go-ethereum/metrics"
@@ -239,18 +240,15 @@ func makeFullNode(ctx *cli.Context) *node.Node {
 		cfg.Eth.OverrideVerkle = &v
 	}
 
-	// Start metrics export if enabled
+	// Start metrics export if enabled.
 	utils.SetupMetrics(&cfg.Metrics)
 
-	// Setup telemetry if enabled
-	telemetryService, err := utils.SetupTelemetry(ctx)
-	if err != nil {
-		utils.Fatalf("failed to setup telemetry: %v", err)
-	}
-	if telemetryService != nil {
-		utils.RegisterTelemetryService(telemetryService, stack)
+	// Setup OpenTelemetry reporting if enabled.
+	if err := tracesetup.StartTelemetry(ctx.Context, cfg.Node.OpenTelemetry, stack); err != nil {
+		utils.Fatalf("failed to setup OpenTelemetry: %v", err)
 	}
 
+	// Add Ethereum service.
 	backend, eth := utils.RegisterEthService(stack, &cfg.Eth)
 
 	// Create gauge with geth system and build information
diff --git a/cmd/geth/main.go b/cmd/geth/main.go
index 0c0e066abb..e59f5aebfc 100644
--- a/cmd/geth/main.go
+++ b/cmd/geth/main.go
@@ -198,6 +198,9 @@ var (
 		utils.RPCGlobalRangeLimitFlag,
 		utils.RPCTelemetryFlag,
 		utils.RPCTelemetryEndpointFlag,
+		utils.RPCTelemetryUserFlag,
+		utils.RPCTelemetryPasswordFlag,
+		utils.RPCTelemetryInstanceIDFlag,
 		utils.RPCTelemetrySampleRatioFlag,
 	}
 
diff --git a/cmd/utils/flags.go b/cmd/utils/flags.go
index 8a252c53c3..73eca936cd 100644
--- a/cmd/utils/flags.go
+++ b/cmd/utils/flags.go
@@ -1056,6 +1056,24 @@ Please note that --` + MetricsHTTPFlag.Name + ` must be set to start the server.
 		Category: flags.APICategory,
 	}
 
+	RPCTelemetryUserFlag = &cli.StringFlag{
+		Name:     "rpc.telemetry.username",
+		Usage:    "HTTP Basic Auth username for OpenTelemetry",
+		Category: flags.APICategory,
+	}
+
+	RPCTelemetryPasswordFlag = &cli.StringFlag{
+		Name:     "rpc.telemetry.password",
+		Usage:    "HTTP Basic Auth password for OpenTelemetry",
+		Category: flags.APICategory,
+	}
+
+	RPCTelemetryInstanceIDFlag = &cli.StringFlag{
+		Name:     "rpc.telemetry.instance-id",
+		Usage:    "OpenTelemetry instance ID",
+		Category: flags.APICategory,
+	}
+
 	RPCTelemetrySampleRatioFlag = &cli.Float64Flag{
 		Name:     "rpc.telemetry.sample-ratio",
 		Usage:    "Defines the sampling ratio for RPC telemetry (0.0 to 1.0)",
@@ -1452,6 +1470,7 @@ func SetNodeConfig(ctx *cli.Context, cfg *node.Config) {
 	setNodeUserIdent(ctx, cfg)
 	SetDataDir(ctx, cfg)
 	setSmartCard(ctx, cfg)
+	setOpenTelemetry(ctx, cfg)
 
 	if ctx.IsSet(JWTSecretFlag.Name) {
 		cfg.JWTSecret = ctx.String(JWTSecretFlag.Name)
@@ -1519,6 +1538,33 @@ func setSmartCard(ctx *cli.Context, cfg *node.Config) {
 	cfg.SmartCardDaemonPath = path
 }
 
+func setOpenTelemetry(ctx *cli.Context, cfg *node.Config) {
+	tcfg := &cfg.OpenTelemetry
+	if ctx.IsSet(RPCTelemetryFlag.Name) {
+		tcfg.Enabled = ctx.Bool(RPCTelemetryFlag.Name)
+	}
+
+	if ctx.IsSet(RPCTelemetryEndpointFlag.Name) {
+		tcfg.Endpoint = ctx.String(RPCTelemetryEndpointFlag.Name)
+	}
+	if ctx.IsSet(RPCTelemetryUserFlag.Name) {
+		tcfg.AuthUser = ctx.String(RPCTelemetryUserFlag.Name)
+	}
+	if ctx.IsSet(RPCTelemetryPasswordFlag.Name) {
+		tcfg.AuthPassword = ctx.String(RPCTelemetryPasswordFlag.Name)
+	}
+	if ctx.IsSet(RPCTelemetrySampleRatioFlag.Name) {
+		tcfg.SampleRatio = ctx.Float64(RPCTelemetrySampleRatioFlag.Name)
+	}
+	if ctx.IsSet(RPCTelemetryInstanceIDFlag.Name) {
+		tcfg.InstanceID = ctx.String(RPCTelemetryInstanceIDFlag.Name)
+	}
+
+	if tcfg.Endpoint != "" && !tcfg.Enabled {
+		log.Warn(fmt.Sprintf("OpenTelemetry endpoint configured but telemetry is not enabled, use --%s to enable.", RPCTelemetryFlag.Name))
+	}
+}
+
 func SetDataDir(ctx *cli.Context, cfg *node.Config) {
 	switch {
 	case ctx.IsSet(DataDirFlag.Name):
diff --git a/cmd/utils/telemetry.go b/cmd/utils/telemetry.go
deleted file mode 100644
index 2c2cd7a4bb..0000000000
--- a/cmd/utils/telemetry.go
+++ /dev/null
@@ -1,86 +0,0 @@
-// Copyright 2026 The go-ethereum Authors
-// This file is part of go-ethereum.
-//
-// go-ethereum is free software: you can redistribute it and/or modify
-// it under the terms of the GNU General Public License as published by
-// the Free Software Foundation, either version 3 of the License, or
-// (at your option) any later version.
-//
-// go-ethereum is distributed in the hope that it will be useful,
-// but WITHOUT ANY WARRANTY; without even the implied warranty of
-// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
-// GNU General Public License for more details.
-//
-// You should have received a copy of the GNU General Public License
-// along with go-ethereum. If not, see <http://www.gnu.org/licenses/>.
-
-package utils
-
-import (
-	"context"
-	"fmt"
-	"time"
-
-	"github.com/ethereum/go-ethereum/internal/telemetry/config"
-	"github.com/ethereum/go-ethereum/log"
-	"github.com/ethereum/go-ethereum/node"
-	"github.com/urfave/cli/v2"
-)
-
-// telemetryService wraps the TelemetryProvider to implement node.Lifecycle.
-type telemetryService struct {
-	telemetryProvider *config.TelemetryProvider
-}
-
-// Start implements node.Lifecycle.
-func (t *telemetryService) Start() error {
-	return nil // TelemetryProvider is already started during setup
-}
-
-// Stop implements node.Lifecycle.
-func (t *telemetryService) Stop() error {
-	ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
-	defer cancel()
-	if err := t.telemetryProvider.Shutdown(ctx); err != nil {
-		log.Error("Failed to stop telemetry service", "err", err)
-		return err
-	}
-	log.Info("Telemetry stopped")
-	return nil
-}
-
-// SetupTelemetry initializes OpenTelemetry tracing based on CLI flags.
-func SetupTelemetry(ctx *cli.Context) (*telemetryService, error) {
-	if !ctx.Bool(RPCTelemetryFlag.Name) {
-		return nil, nil
-	}
-	endpoint := ctx.String(RPCTelemetryEndpointFlag.Name)
-	if endpoint == "" {
-		return nil, nil
-	}
-	sampleRatio := ctx.Float64(RPCTelemetrySampleRatioFlag.Name)
-	if sampleRatio < 0 || sampleRatio > 1 {
-		return nil, fmt.Errorf("invalid sample ratio: %f", sampleRatio)
-	}
-	setupCtx := ctx.Context
-	if setupCtx == nil {
-		setupCtx = context.Background()
-	}
-
-	// Configure OpenTelemetry tracing
-	handle, err := config.Setup(
-		setupCtx,
-		endpoint,
-		sampleRatio,
-	)
-	if err != nil {
-		return nil, err
-	}
-	log.Info("Telemetry enabled", "endpoint", endpoint)
-	return &telemetryService{telemetryProvider: handle}, nil
-}
-
-// RegisterTelemetryService registers the telemetryService with the node.
-func RegisterTelemetryService(service *telemetryService, stack *node.Node) {
-	stack.RegisterLifecycle(service)
-}
diff --git a/internal/telemetry/config/config.go b/internal/telemetry/tracesetup/setup.go
similarity index 62%
rename from internal/telemetry/config/config.go
rename to internal/telemetry/tracesetup/setup.go
index 99bcbd87f0..e48bce9283 100644
--- a/internal/telemetry/config/config.go
+++ b/internal/telemetry/tracesetup/setup.go
@@ -14,15 +14,18 @@
 // You should have received a copy of the GNU Lesser General Public License
 // along with the go-ethereum library. If not, see <http://www.gnu.org/licenses/>.
 
-package config
+package tracesetup
 
 import (
 	"context"
+	"encoding/base64"
 	"fmt"
 	"net/url"
 	"time"
 
 	"github.com/ethereum/go-ethereum/internal/version"
+	"github.com/ethereum/go-ethereum/log"
+	"github.com/ethereum/go-ethereum/node"
 	"go.opentelemetry.io/otel"
 	"go.opentelemetry.io/otel/attribute"
 	"go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp"
@@ -32,22 +35,42 @@ import (
 	semconv "go.opentelemetry.io/otel/semconv/v1.38.0"
 )
 
-// TelemetryProvider wraps a TracerProvider and exposes the Shutdown method.
-type TelemetryProvider struct {
-	tracerProvider *sdktrace.TracerProvider
+// Service wraps the provider to implement node.Lifecycle.
+type Service struct {
+	provider *sdktrace.TracerProvider
 }
 
-// Shutdown shuts down the TracerProvider.
-func (t *TelemetryProvider) Shutdown(ctx context.Context) error {
-	return t.tracerProvider.Shutdown(ctx)
+// Start implements node.Lifecycle.
+func (t *Service) Start() error {
+	return nil // provider is already started during setup
 }
 
-// Setup initializes telemetry with the given parameters.
-func Setup(ctx context.Context, endpoint string, sampleRatio float64) (*TelemetryProvider, error) {
+// Stop implements node.Lifecycle.
+func (t *Service) Stop() error {
+	ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
+	defer cancel()
+	if err := t.provider.Shutdown(ctx); err != nil {
+		log.Error("Failed to stop OpenTelemetry service", "err", err)
+		return err
+	}
+	log.Debug("OpenTelemetry stopped")
+	return nil
+}
+
+// StartTelemetry initializes telemetry with the given parameters.
+func StartTelemetry(ctx context.Context, cfg node.OpenTelemetryConfig, stack *node.Node) error {
+	if !cfg.Enabled {
+		return nil
+	}
+
+	if cfg.SampleRatio < 0 || cfg.SampleRatio > 1 {
+		return fmt.Errorf("invalid sample ratio: %f", cfg.SampleRatio)
+	}
+
 	// Create exporter based on endpoint URL
-	u, err := url.Parse(endpoint)
+	u, err := url.Parse(cfg.Endpoint)
 	if err != nil {
-		return nil, fmt.Errorf("invalid rpc tracing endpoint URL: %w", err)
+		return fmt.Errorf("invalid rpc tracing endpoint URL: %w", err)
 	}
 	var exporter sdktrace.SpanExporter
 	switch u.Scheme {
@@ -61,18 +84,23 @@ func Setup(ctx context.Context, endpoint string, sampleRatio float64) (*Telemetr
 		if u.Path != "" && u.Path != "/" {
 			opts = append(opts, otlptracehttp.WithURLPath(u.Path))
 		}
+		if cfg.AuthUser != "" {
+			opts = append(opts, otlptracehttp.WithHeaders(map[string]string{
+				"Authorization": "Basic " + base64.StdEncoding.EncodeToString([]byte(cfg.AuthUser+":"+cfg.AuthPassword)),
+			}))
+		}
 		exporter, err = otlptracehttp.New(ctx, opts...)
 	default:
-		return nil, fmt.Errorf("unsupported telemetry url scheme: %s", u.Scheme)
+		return fmt.Errorf("unsupported telemetry url scheme: %s", u.Scheme)
 	}
 	if err != nil {
-		return nil, fmt.Errorf("failed to create telemetry exporter: %w", err)
+		return fmt.Errorf("failed to create telemetry exporter: %w", err)
 	}
 
 	// Define sampler such that if no parent span is available,
 	// then sampleRatio of traces are sampled; otherwise, inherit
 	// the parent's sampling decision.
-	sampler := sdktrace.ParentBased(sdktrace.TraceIDRatioBased(sampleRatio))
+	sampler := sdktrace.ParentBased(sdktrace.TraceIDRatioBased(cfg.SampleRatio))
 
 	// Define batch span processor options
 	batchOpts := []sdktrace.BatchSpanProcessorOption{
@@ -87,11 +115,14 @@ func Setup(ctx context.Context, endpoint string, sampleRatio float64) (*Telemetr
 	}
 
 	// Define resource with service and client information
-	res := resource.NewWithAttributes(
-		semconv.SchemaURL,
+	var attr = []attribute.KeyValue{
 		semconv.ServiceName("geth"),
 		attribute.String("client.name", version.ClientName("geth")),
-	)
+	}
+	if cfg.InstanceID != "" {
+		attr = append(attr, semconv.ServiceInstanceID(cfg.InstanceID))
+	}
+	res := resource.NewWithAttributes(semconv.SchemaURL, attr...)
 
 	// Configure TracerProvider and set it as the global tracer provider
 	tp := sdktrace.NewTracerProvider(
@@ -107,6 +138,8 @@ func Setup(ctx context.Context, endpoint string, sampleRatio float64) (*Telemetr
 		propagation.TraceContext{},
 		propagation.Baggage{},
 	))
-
-	return &TelemetryProvider{tracerProvider: tp}, nil
+	service := &Service{provider: tp}
+	stack.RegisterLifecycle(service)
+	log.Info("OpenTelemetry tracing enabled", "endpoint", cfg.Endpoint)
+	return nil
 }
diff --git a/node/config.go b/node/config.go
index dc436876cc..5e0ec63ee5 100644
--- a/node/config.go
+++ b/node/config.go
@@ -191,9 +191,7 @@ type Config struct {
 	GraphQLVirtualHosts []string `toml:",omitempty"`
 
 	// Logger is a custom logger to use with the p2p.Server.
-	Logger log.Logger `toml:",omitempty"`
-
-	oldGethResourceWarning bool
+	Logger log.Logger `toml:"-,omitempty"`
 
 	// AllowUnprotectedTxs allows non EIP-155 protected transactions to be send over RPC.
 	AllowUnprotectedTxs bool `toml:",omitempty"`
@@ -210,7 +208,28 @@ type Config struct {
 	// EnablePersonal enables the deprecated personal namespace.
 	EnablePersonal bool `toml:"-"`
 
+	// Configures database engine used by the node.
 	DBEngine string `toml:",omitempty"`
+
+	// Configures OpenTelemetry reporting.
+	OpenTelemetry OpenTelemetryConfig `toml:",omitempty"`
+
+	oldGethResourceWarning bool
+}
+
+// OpenTelemetryConfig has settings for
+type OpenTelemetryConfig struct {
+	Enabled bool `toml:",omitempty"`
+
+	InstanceID string `toml:",omitempty"`
+
+	// Exporter endpoint.
+	Endpoint     string `toml:",omitempty"`
+	AuthUser     string `toml:",omitempty"`
+	AuthPassword string `toml:",omitempty"`
+
+	// Percentage of sampled traces.
+	SampleRatio float64 `toml:",omitempty"`
 }
 
 // IPCEndpoint resolves an IPC endpoint based on a configured value, taking into