Ethereum News Today: Ethereum's Energy-Efficient Edge Drives Institutional Surge Over Bitcoin

Ethereum's price rebounded above $4,000 in early October, driven by optimism surrounding U.S.-China trade negotiations and expectations of Federal Reserve rate cuts, according to a Yahoo Finance analysis. The cryptocurrency's recovery followed a seven-day low of $3,811, with traders closely monitoring the Fed's upcoming policy decision for clues on liquidity and risk appetite, as noted in a Coinfomania report. Meanwhile, institutional Ethereum treasury firms, including Tom Lee's Bitmine, have accumulated 3.2 million ETH, surpassing Bitcoin's corporate holdings in supply dominance—a trend analysts attribute to Ethereum's energy-efficient Proof-of-Stake model and regulatory clarity, according to the same Yahoo Finance analysis.

The rebound coincided with progress in U.S.-China trade talks, which eased geopolitical tensions and boosted broader market sentiment. President Donald Trump's Asia tour, including a peace treaty between Cambodia and Thailand and a pending trade deal with China, catalyzed a 10% rally in Ethereum over the weekend, as noted in a TradingView report. However, bearish traders remained active, deploying $650 million in leveraged short positions around the $4,100 level, signaling ongoing volatility ahead of the Fed's October 28–29 meeting, as the Yahoo Finance analysis observed.

Federal Reserve policy remains a central focus for crypto investors. Prediction markets price in a 98% probability of a 25 basis-point rate cut in October, with additional cuts expected by year-end, according to a Yahoo Finance piece. Analysts draw parallels to the 2019 liquidity surge, when Fed easing preceded a threefold rise in Bitcoin prices, which the same Yahoo Finance piece discusses. Ending quantitative tightening—a process of balance sheet reduction—could inject $95 billion monthly into global markets, potentially boosting risk assets like Ethereum, the Yahoo Finance piece also notes. U.S. Treasury Secretary Janet Yellen recently signaled confidence that inflation is trending toward the Fed's 2% target, reinforcing expectations of accommodative monetary policy, according to a Coinotag report.

Institutional demand for Ethereum has intensified amid regulatory developments. Ethereum-based ETFs saw $246 million in inflows on October 28, led by Fidelity's FETH product, while Bitcoin ETFs added $202 million, according to a CoinPedia update. This contrasts with Ethereum's recent outflows, as traders balanced positions ahead of macroeconomic clarity. Corporate treasuries, particularly in Asia, have also prioritized Ethereum for its yield-bearing features. South Korea's Bitplanet, for instance, launched a daily Bitcoin accumulation plan, reflecting regional confidence in digital assets.

Technical analysts highlight critical price levels for Ethereum. A sustained break above $4,200 could confirm bullish momentum, while a drop below $3,900 may trigger further consolidation, the Coinfomania report warned. The outcome hinges on Fed Chair Jerome Powell's post-meeting remarks, with dovish signals likely to weaken the U.S. dollar and enhance crypto appeal, as the Coinfomania report also suggests.

As the Fed's decision looms, Ethereum's interplay between macroeconomic forces and institutional adoption defines its near-term trajectory. With trade tensions easing and liquidity expectations rising, the cryptocurrency faces a pivotal moment—balancing speculative short-term pressures against long-term structural demand, as earlier reports have highlighted.