Ethereum price is showing signs of resilience as institutional demand recovers.
summary
- The US Spot Ethereum ETF recorded inflows of $421 million on October 7, marking the seventh consecutive day of positive inflows.
- Foreign exchange reserves have fallen to a three-year low of 17.4 million ETH, amplified by corporate holdings and the burn of EIP-1559.
- ETH is trading near $4,450 and has consolidated above the RSI support at $53, suggesting a possible retest of $4,900-$5,000 if momentum gains.
Amid the general market decline, Ethereum fell 5.3% from the previous day and was trading at $4,443 at the time of writing. Despite the decline, ETH is still up 7% for the week and 3.4% for the month, just 10% below its August 24 high of $4,946.
Over the past seven days, the token’s volatility has been moderate, ranging from $4,133 to $4,748. This indicates a period of consolidation rather than a trend reversal. Trading activity increased, with 24-hour spot volume increasing 27% from the previous day to $51.9 billion.
Ethereum (ETH) futures volume rose 54% to $124.2 billion, while open interest fell 5.5% to $60.3 billion, according to data from Coinglass. A decrease in open interest indicates that leveraged positions have been flushed out, which is often a sign that prices will stabilize again.
Spot ETH ETF inflows could fuel momentum
Spot Ethereum ETF continues to attract consistent inflows. According to SoSoValue data, there was $420 million in net inflows on October 7, marking the seventh consecutive day of positive movement. Total assets in Spot Ethereum ETFs now exceed $30 billion, with inflows totaling $803 million last month.
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Despite the short-term volatility, these inflows show that institutional confidence in Ethereum remains strong. Constant demand for ETFs helps absorb cyclical supply and cushion negative movements. With institutional exposure increasing, analysts predict that if this trend continues into October, it could contribute to a medium-term price recovery.
Foreign exchange reserves have already fallen from 28.8 million ETH in 2022 to 17.4 million ETH, a three-year low, as corporate bonds and ETFs absorb supply. Public companies currently hold about 3.6 million ETH, adding to the tight supply.
Additionally, the ongoing EIP-1559 burn mechanism, which permanently eliminates some transaction fees, has made Ethereum’s supply dynamics more deflationary.
Ethereum price technical analysis
Ethereum’s daily chart shows a stable consolidation pattern within the Bollinger Bands, with the price at $4,450, just above the mid-band $4,313 that currently serves as short-term support. The upper band near $4,731 is the next resistance level to watch.
Ethereum daily chart. Credit: crypto.news
The fact that trading volumes remain strong indicates that ETH is stabilizing after recent volatility. The Relative Strength Index (RSI) is 53, indicating that the market is balanced and neither overbought nor oversold. Given this neutral momentum, Ethereum could be poised for the next significant move if volatility narrows further.
If the bulls are able to break above $4,700, ETH could quickly test the $4,900-$4,950 range, which corresponds to the August highs and could signal a possible continuation towards the psychological $5,000 level. In contrast, a close below $4,300 could lead to $3,900, the point where the 50-day moving average and the lower Bollinger Bands converge.
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