Ethereum News Today: Ethereum ETF Exodus Sparks Bullish Bets on $4,400 Breakout

Ethereum's price has come under pressure amid significant outflows from U.S. spot ETFs, which saw $197 million in withdrawals on Monday—the second-largest single-day withdrawal in the fund's history. This trend coincides with a surge in unstaking ETH, with $3.9 billion in pending withdrawals, according to Timothy Misir, Head of Research at BRN. The sell-off has pushed Ethereum's price to $4,203.84 as of the latest data, hovering near the $4,400 level identified as a crucial support zone [1].

Despite these outflows, Ethereum ETFs have continued to attract strong institutional interest, with net inflows reaching 649,000 ETH in the last week, the highest weekly inflow on record. This reflects a broader structural shift as the asset continues to gain traction in traditional financial markets [4]. Analysts suggest that Ethereum ETFs are now capturing investor interest more effectively than Bitcoin ETFs in recent months, with the former seeing a more aggressive inflow pattern [4].

The U.S. Securities and Exchange Commission (SEC) has delayed the approval of several Ethereum-based ETFs, including one proposed by Truth Social, a platform associated with Donald Trump. The regulator extended the decision period for these funds until October 8, citing the need for additional time to review the proposals. The delays affect multiple providers, including Grayscale, CoinShares, and 21Shares. While this has created uncertainty, some market observers believe the delays are a temporary setback rather than a permanent roadblock, with approval likely by mid to late October [2].

On the technical front, Ethereum's price remains within a key consolidation range of $3,900 to $4,400, where traders are watching for signs of a breakout. The asset's four-hour RSI remains below 50, indicating potential for further downward movement before a possible bullish reversal [4]. Analysts have identified $3,900 as a critical level, where a retest could flush out weak hands and set the stage for a stronger recovery. Meanwhile, the $4,400 resistance level is seen as a potential turning point—breakthrough could lead to renewed bullish momentum toward $4,583 and possibly higher in the coming weeks [4].

Despite the short-term volatility, Ethereum's long-term outlook remains bullish, supported by growing institutional adoption and the continued expansion of its use cases. Prominent advocates, including Tom Lee of BitMine Immersion Technologies Inc., have emphasized Ethereum's role in the future financial system, particularly as a programmable ledger enabling smart contracts. With Ethereum sitting on $6 billion in holdings, Lee has positioned the network as a critical infrastructure for the convergence of Wall Street and AI-driven financial systems [5].

However, Ethereum faces competition from other fast-growing blockchains like Solana, which has seen its own rally this year. Additionally, the market remains sensitive to macroeconomic developments, including potential interest rate cuts by the U.S. Federal Reserve and geopolitical events such as the ongoing U.S.–Ukraine–Russia discussions. Analysts suggest that a pause in Fed rate hikes and a potential ceasefire could provide a tailwind for risk-on assets like cryptocurrencies [1].

Ethereum's path to a potential $4,500 target this week will depend on whether the $4,400 resistance level holds and whether the ETF outflows slow or reverse. If institutional buying continues at the current pace and short-term volatility is absorbed, the asset could see a retest of $4,500 by the end of the week, with a more significant push toward all-time highs possible in the coming months [4].

Source:

[1] Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin (https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html)

[2] XRP, Litecoin and Ethereum ETFs Face Delays as SEC (https://www.cointribune.com/en/the-xrp-litecoin-and-ethereum-etfs-will-wait-longer-the-sec-takes-its-time/)

[3] SEC Punts on Trump Media Bitcoin and Ethereum ETF (https://finance.yahoo.com/news/sec-punts-trump-media-bitcoin-013104143.html)

[4] ETH charts predict $3.9K retest, then a 100% rally to new (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)

[5] Ethereum's Big Backers Unleash Billions to Push Into Wall Street (https://finance.yahoo.com/news/ethereum-big-backers-unleash-billions-130704758.html)