Ethereum News Today: Institutions and Whales Stockpile ETH as $5.5K Rally Gathers Steam

Ethereum (ETH) is poised for a potential reversal after a three-wave pullback, with Fundstrat Global Advisors predicting a rebound toward $5,500. The firm's Managing Director, Mark Newton, stated that Ether's price is expected to stabilize within the next one to two days, with a target of $5,500 following the conclusion of the correction. As of recent data, ETH traded at approximately $4,331, with analysts noting a likely decline to around $4,200 before a recovery Ethereum News: ETH 3-Wave Pullback Nears End with $5.5K Target, Fundstrat^[1]. This technical pattern aligns with historical market behavior, suggesting a short-term bottoming out before a significant upward movement Ether Poised for All-Time High Despite Recent Weakness: Fundstrat Says^[2].

The pullback, which began after a rally in early October, has seen ETH fall from a peak of $4,750 to below $4,300. Newton emphasized that the correction is part of a broader market adjustment since September but remains confident in Ethereum's resilience. "I do not make much of crypto weakness in recent days and expect ETH likely bottoms out over the next 1-2 days before heading back higher," he noted Ether ‘3-Wave Pullback’ to End Soon, $5.5K Next: Fundstrat^[3].

Institutional support for Ethereum has strengthened, with major firms and investors accumulating significant holdings. Grayscale, a leading crypto investment firm, has deposited hundreds of millions in ETH onto the Beacon Chain, signaling confidence in the network's long-term prospects. Similarly, Bitmine, led by Fundstrat adviser Tom Lee, added 23,823 ETH ($103.68 million) to its treasury, further cementing Ethereum's role as a key institutional asset BitMine Immersion (BMNR) Announces ETH Holdings Exceeding 2.83 Million Tokens^[4]. SharpLink Gaming, the world's second-largest Ethereum treasury company, holds 838,730 ETH valued at $3.67 billion, underscoring growing corporate adoption BitMine’s Ethereum Treasury: The $2.9 Billion Corporate Accumulation Strategy^[5].

Analysts highlight that the current volatility presents strategic accumulation opportunities for investors. Benjamin Cowen, a crypto analyst, noted that "choppy price action" will persist until the bull market support band catches up, a process that could take weeks. Nassar Achkar of CoinW Exchange added that dips are "strategic accumulation opportunities" ahead of a potential liquidity boost from Federal Reserve policy easing Institutions Scoop $882M in ETH as Whale Activity Intensifies^[6].

The anticipated rally is also driven by macroeconomic factors. CoinW's Achkar pointed to a constructive technical setup and expectations of increased liquidity from potential Fed rate cuts, which could amplify Ethereum's upward momentum. Meanwhile, on-chain data from Arkham Intelligence reveals that large investors (whales) are actively accumulating ETH, with one entity purchasing 92,899 ETH ($412 million) over four days ETH Going to $5,500 by Mid-October, Says Fundstrat’s Global Head of Technical Strategy^[7].

Bitmine's aggressive accumulation strategy reflects broader institutional confidence. The firm's total crypto and cash holdings now exceed $13.4 billion, including 2.83 million ETH tokens. Bitmine chairman Tom Lee described Ethereum as "the foundation of global finance" and emphasized its role in the next financial system. The company aims to secure 5% of Ethereum's total supply, a target aligned with long-term macroeconomic trends in AI and crypto adoption Equity Offering and ETH Accumulation: How BitMine Is Reshaping Corporate Strategy^[8].

The market's technical indicators also support a bullish outlook. CoinDesk Research noted that ETH stabilized after a sharp drop, with demand visible at lower levels and resistance near $4,671. The token's consolidation phase suggests traders are awaiting a catalyst for a breakout Ethereum Price Prediction: $4,500 Reclaimed^[9]. Standard Chartered recently raised its 2025 ETH price target from $4,000 to $7,500, projecting further gains to $12,000 in 2026 and beyond, contingent on continued institutional participation Ethereum Price Forecast 2025: FED Rate Cuts and QE Likely to Boost ETH Performance^[10].

While profit-taking has emerged-such as the Ethereum Foundation's sale of 2,795 ETH ($12.7 million)-these transactions are seen as part of normal market dynamics rather than signs of waning confidence. The combination of strategic accumulation, OTC transactions, and measured profit-taking indicates a maturing market with sophisticated participants Fed’s Quantitative Easing: What’s In Store For The ETH/USD Pair?^[11].

The institutional and whale activity, coupled with Fundstrat's technical analysis, suggests Ethereum's pullback is nearing an end. With support from major investors and a constructive macroeconomic environment, the asset could resume its upward trajectory, potentially reaching $5,500 as predicted.