Ethereum News Today: Ethereum Loses $169M, Yet Staking Surge and Dencun Upgrades Push $8K Hopes

Ethereum (ETH) experienced $169 million in outflows from exchange wallets last week, according to a TradingView report, yet traders remain bullish on the asset, with leveraged Ethereum ETPs showing strong demand, according to a Coinotag report. The pullback comes amid a broader market shift, as Bitcoin (BTC) attracted $921 million in inflows, driven by optimism around potential Federal Reserve rate cuts, a Live Bitcoin News report said. Despite the outflows, Ethereum's long-term fundamentals—such as deflationary token burns, rising institutional staking demand, and upcoming network upgrades—continue to draw investor confidence, according to a Cryptopolitan analysis.

The divergence in fund flows highlights a rotation within the crypto market. U.S. spot Bitcoin ETFs saw $20.33 million in inflows on October 23, with BlackRock's IBIT leading the charge, while Ethereum ETFs recorded $127.51 million in outflows, as a CoinPedia report noted. This trend intensified as geopolitical tensions between the U.S. and China fueled uncertainty, pushing capital toward perceived safe-haven assets like Bitcoin, according to a CryptoNews report. Meanwhile, Ethereum's price held steady at $3,970, with on-chain data suggesting a potential rebound after forming a "triple bottom" pattern.

Institutional activity underscores Ethereum's resilience. Staking demand remains a key driver, with over $27.5 million in private capital raised for Ethereum-based projects like Remittix (RTX), a PayFi initiative bridging blockchain and traditional banking systems, as Cryptopolitan reported. Remittix's live wallet beta and CertiK security audits have bolstered investor trust, while a 15% USDT referral program incentivizes adoption. Analysts argue such utility-driven projects reinforce Ethereum's role as infrastructure for global payments, aligning with bullish price forecasts of $8,000 by 2025.

Macroeconomic factors also shaped market sentiment. The U.S. government shutdown delayed critical economic data, leaving the September CPI report as the sole guide for Fed policy; the 3% year-over-year inflation print, below expectations, sparked a risk-on rally, with Bitcoin surging over 5% and Ethereum gaining 4%, Coinotag reported. Investors are now pricing in a 98.4% chance of a 25-basis-point rate cut at the October FOMC meeting, according to Mitrade.

Despite short-term volatility, Ethereum's technical outlook remains robust. Trading at $3,846, the asset's market cap stands at $464 billion, with daily volume hitting $49.89 billion, per earlier coverage. Developers are advancing the Dencun upgrade, which promises improved scalability, while DeFi activity continues to grow. "Ethereum's deflationary dynamics and expanding use cases make it a compelling long-term play," said one analyst, echoing sentiments from research desks targeting $8,000 by 2025.

The market's focus now turns to the Fed's October 29-30 meeting and the potential approval of spot Ethereum ETFs, which could unlock new capital inflows, TradingView noted. For now, traders are hedging bets: while Ethereum faces outflows, leveraged products see sustained demand, signaling a belief in near-term price recovery.

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