Ethereum News Today: Ethereum ETFs Rally as Whales Bet on Crash: Crypto's High-Stakes Rebound

Ethereum (ETH) is showing early signs of recovery as renewed investor confidence emerges amid shifting market dynamics. After a week of volatility, U.S. spot Ethereum exchange-traded funds (ETFs) recorded $141.6 million in net inflows on October 21, led by Fidelity's FETH and BlackRock's ETHA. This marks a reversal from three consecutive days of outflows and suggests institutional demand is stabilizing for the second-largest cryptocurrency by market capitalization, according to crypto.news. Meanwhile, Ethereum's Fusaka upgrade, set for a December 3, 2025, mainnet launch, is expected to enhance network efficiency through a gas cap mechanism, adding another layer of optimism for long-term holders, according to a TradingView note.

The ETF inflows coincide with broader market uncertainty driven by Bitcoin (BTC) whales deploying massive short positions. A prominent Bitcoin whale, known as "BitcoinOG(1011)," has added $140 million in open short positions on Hyperliquid, reducing its exposure from $227 million earlier this week. This whale, which accurately predicted the October 10-11 crypto crash, has deposited 5,352 BTC—worth $600 million—across exchanges like Kraken and Binance since mid-October. Analysts note that such large-scale shorting activity, while bearish for Bitcoin, could indirectly pressure Ethereum as leveraged positions across the crypto market become liquidated, according to Yahoo Finance.

Compounding the volatility, another whale dubbed the "Trump Insider Whale" executed a $1.1 billion leveraged short bet across Bitcoin and Ethereum, timed to perfection ahead of President Donald Trump's October 10 announcement of a 100% tariff on Chinese imports. The position generated $150 million in profits within hours of the crash, raising questions about market access to non-public information. On-chain analysts warn that such perfectly timed trades could trigger a self-fulfilling prophecy if retail traders replicate the strategies, further amplifying downward pressure on crypto assets, notes an Investing.com analysis.

Despite these headwinds, Ethereum's technical indicators hint at a potential rebound. The asset is currently trading near $3,857, with key support at $3,800 and resistance near $4,500. Open interest in Ethereum derivatives has risen 0.6% to $43.8 billion, signaling cautious optimism among traders rebuilding positions post-crash, the crypto.news report says. However, the path forward remains precarious, with investors closely watching the Federal Reserve's October 28–29 rate decision. A dovish outcome could boost liquidity for risk assets like crypto, while a hawkish stance may reignite macroeconomic pressures.