Ethereum News Today: Ethereum Builds Rally Foundation as ETFs and Technical Signs Align

Ethereum (ETH) appears to be gaining momentum as U.S. spot ETF inflows resume and on-chain activity suggests growing investor confidence. After three days of outflows, Ethereum ETFs recorded $141.6 million in net inflows on October 21, led by Fidelity's FETH and BlackRock's ETHA, according to a crypto.news report. This reversal comes as the token trades near $3,857, with a 10% drop over the past 30 days but a modest 2.1% rebound in the last seven days, according to Yahoo Finance. The renewed inflows, coupled with a 35.2% surge in 24-hour trading volume to $45.8 billion, signal a potential stabilization in the market, the crypto.news report noted.

Whale activity further reinforces this narrative. A prominent whale labeled "BitcoinOG(1011)" has added $140 million in short positions against Bitcoin, but Ethereum's large holders are accumulating. Whale addresses holding over 10,000 ETH increased their combined holdings by 150,000 ETH (worth $588 million) in 24 hours, while the Spent Coins Age Band metric dropped 88%, indicating rising dormancy and reduced selling pressure, the Yahoo Finance piece observed. This combination of whale accumulation and dormant coin dynamics often precedes price rallies in historical data, the Yahoo article added.

Technical indicators also hint at a possible turnaround. Ethereum's RSI stands at 41.15, avoiding oversold territory but showing bearish momentum, while the Bollinger Band midline at $4,146 suggests price compression ahead of a directional breakout, the crypto.news report commented. Fibonacci retracement levels at $3,986 and $4,281 have repeatedly capped rallies, but a close above $4,281 could target $4,954, marking a 9% threshold for renewed bullish momentum, the Yahoo Finance analysis noted. Conversely, a drop below $3,804 risks a deeper pullback toward $3,509, the Yahoo piece warned.

Market sentiment remains mixed. While Ethereum's derivatives volume surged 57.3% to $114.2 billion and open interest rose 0.6% to $43.8 billion, the crypto.news report highlighted broader macroeconomic factors that loom. The Federal Reserve's upcoming rate decision (October 28–29) is pivotal, with markets pricing a 95% probability of a 25-basis-point cut, the crypto.news article added. Dovish signals could boost liquidity for risk assets like crypto, but a hawkish stance might reignite macro pressures.

Meanwhile, speculative bets on Ethereum's future are intensifying. Perplexity AI forecasts a potential $1,600 target for Binance Coin (BNB) by year-end, citing its deflationary model and expanding utility. Solana (SOL) also faces ETF approval speculation, with analysts projecting a $500 level by 2025's close. However, Ethereum's path remains constrained by its 21% discount to its August peak of $4,946, the crypto.news report observed.

The convergence of ETF inflows, whale accumulation, and technical resilience suggests Ethereum is building a stronger base for a potential rally. Yet, key resistance levels and macroeconomic uncertainties mean the outcome is far from guaranteed, the Yahoo Finance piece concluded.