Ethereum News Today: Ethereum's $4K Rebound Hangs in Balance as Geopolitical Optimism Battles Market Uncertainty

Ethereum's price briefly reclaimed the $4,000 level on October 26, fueled by optimism surrounding U.S. President Donald Trump's Asia tour and impending trade talks with China's Xi Jinping. The rebound came amid heightened speculation, with bearish traders amassing $650 million in leverage around the $4,100 threshold, signaling ongoing uncertainty about ETH's near-term direction, according to a Yahoo analysis. The cryptocurrency's recovery aligned with broader market gains, as top 10 tokens including Bitcoin and Solana posted consecutive gains over the weekend, driven by geopolitical developments in Trump's Asian itinerary, according to a Coinpedia report.

The U.S.-China trade breakthrough, announced during Trump's stop in Malaysia, where he oversaw a peace treaty between Cambodia and Thailand, eased global supply chain risks and lifted the crypto market cap to $3.83 trillion, the Coinpedia report said. However, Ethereum's resurgence remained fragile, with treasury firms such as Tom Lee's Bitmine maintaining aggressive accumulation strategies. Data from Artemis showed these firms now hold 3.2 million ETH—0.40% of the total supply—surpassing Bitcoin's corporate holdings of 0.36%, the Yahoo analysis added. Analysts attribute this shift to Ethereum's yield-bearing features and energy-efficient Proof-of-Stake transition, which have attracted institutional investors prioritizing sustainability, the same analysis noted.

Meanwhile, a crypto whale identified as "0xc2a" capitalized on October's volatility, netting $17 million in profits from long positions in Bitcoin and Ethereum. The trader's success, highlighted by a 100% win rate since the market's mid-October crash, was detailed in a Yahoo report. Despite this, Ethereum's performance has defied traditional "Uptober" expectations, as geopolitical uncertainty and liquidation waves have dampened investor confidence.

Bitcoin's recovery to $113,800—up 2% on the weekend—further highlighted the divergent trajectories of major assets. While Bitcoin's 10-day rally saw $400 million in fresh TVL deposits, gold's 6% decline from its October 18 peak raised questions about its role as a safe haven, according to a Yahoo forecast. The inverse correlation between Bitcoin and gold, which hit -0.84, reflects shifting investor priorities toward yield-generating digital assets amid regulatory clarity and ETF approvals, the same forecast found.

Ethereum's path above $4,000 remains precarious, with short-term traders closely monitoring Trump's October 30 meeting with Xi. A formal trade deal could alleviate tariffs and stabilize markets, but analysts caution that broader macroeconomic factors—including the FOMC meeting—will ultimately dictate ETH's trajectory. For now, the cryptocurrency's price action underscores a market caught between geopolitical optimism and lingering risk-off sentiment.