Ethereum is continuing to show signs of strength as institutional demand returns.
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- U.S. spot Ethereum ETFs logged $421M in inflows on Oct. 7, marking seven consecutive days of positive flows.
- Exchange reserves have fallen to a three-year low of 17.4M ETH, amplified by corporate holdings and EIP-1559 burns.
- ETH trades near $4,450, consolidating above support with RSI at 53, hinting at a possible retest of $4,900–$5,000 if momentum builds.
Ethereum fell by 5.3% on Friday, and was currently trading at $4,443. Despite the drop, ETH has still gained 7% in the last week, 3.4% this month and is only 10% lower than its August 24 peak.
Over the past seven days, token volatility has been moderate, with a range of $4,133 to 4,748. Instead of a trend change, it indicates a period consolidation. The trading activity increased, with the 24-hour spot volumes at $51.9 billion. This is up by 27% compared to yesterday.
Coinglass dataEthereumETHThe volume of ) futures rose by 54%, to $124.2 Billion. Open interest dropped 5.5% to $60.3 Billion. Open interest declines indicate that leveraged positions have been flushed, and this is a good indicator of a return to price stability.
The inflow of ETFs that hold ETH could boost momentum
Spot Ethereum ETFs continue to draw consistent inflows. SoSoValue data Net inflows were $420m on the 7th of October, the seventh positive day. Assets for spot Ethereum-based ETFs are now over $30bn, and inflows amounting to $803mn in the previous month.
These inflows show that despite the short-term volatility of Ethereum, institutional confidence has been strong. ETFs are in constant demand, which helps to absorb the circulating stock and reduce negative movements. The analysts believe that institutional exposure will increase as the trend Continued through October it could help to stimulate a price recovery on the medium term.
Corporate treasuries are absorbing the exchange supply. The reserves of exchange have dropped from 28.8 millions ETH to 17.4 million ETH, a drop of three years. Public companies currently hold around 3.6million ETH which adds to the squeeze on supply.
Ethereum’s dynamic supply is also being deflated by the EIP-1559 burning mechanism. This burns off a part of all transaction fees.
Ethereum technical analysis
Ethereum’s daily graph shows a consolidation pattern in the Bollinger Bands. The price is $4450 just above $4313, the band at the middle of the chart, which currently acts as a short-term resistance. Watch out for the upper band which is located near $4.731.
Trading volumes remain strong, indicating that ETH has stabilized following the recent volatility. Relative Strength Index, or RSI (Relative Strength Index), indicates that market balance is at 53. It does not indicate overboughtness nor oversoldness. Ethereum could be preparing itself for its next major move as volatility decreases further.
If bulls can push above $4,700, ETH may swiftly retest the $4,900–$4,950 range, which would correspond with the August high and suggest a possible continuation The psychological threshold of $5,000 is approaching. In contrast, closing below $4300 may lead to $3900. This is the level at which the Bollinger Band lower and the Bollinger 50-day average converge.
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Source: crypto.news
