Ethereum News Today: Whales and Analysts Back Ethereum's Bullish Case Despite Macro Risks

Ethereum buyers are building strength amid recent price dips, with key technical and on-chain indicators suggesting the second-largest cryptocurrency could stage a rebound. Analysts and whale activity point to renewed bullish momentum, though macroeconomic factors like U.S. inflation data and ETF flows remain critical variables for the coming weeks.

A major "smart trader" whale has increased their Ethereum position to $131 million, signaling confidence in the asset's near-term potential. Cointelegraph reports that CryptoQuant's analysis highlights a "textbook continuation" price structure, with targets set at $4,250 and eventually $10,000 if key resistance levels hold. Jelle, a prominent crypto analyst, echoed these sentiments, noting that Ethereum's ability to maintain previous highs suggests a matter of time before it enters a "price discovery" phase.

Technical indicators also support a bullish case. Ethereum has rebounded above $4,200, with exponential moving averages (EMAs) showing a shift in market sentiment. The 9-day EMA's upward turn and the 20-day EMA's flattening suggest weakening bearish momentum, while the MACD histogram's transition to positive territory confirms strengthening buying pressure, The Currency Analytics notes. A decisive break above $4,450 could validate a broader bullish setup, unlocking further gains toward $4,684 and beyond.

However, Ethereum faces headwinds from macroeconomic developments. The upcoming U.S. CPI report, expected to show inflation at 3.1% year-over-year, could trigger volatility. A strong reading might pressure the dollar and reignite short-term bearish sentiment, though analysts argue a CPI below expectations could spur risk-on flows into crypto assets, according to Coinpedia's live CPI updates. The FOMC meeting and potential U.S.-China trade deal also loom as catalysts, with market participants closely watching for shifts in liquidity.

On-chain data paints a mixed picture. Coinpedia reports ETF flows showing Ethereum ETFs have seen $127.5 million in outflows as of October 23 while Bitcoin ETFs attracted $20.33 million in inflows, reflecting a rotation toward the top cryptocurrency. Despite this, Ethereum's price action suggests accumulation. A "triple bottom" pattern around $3,750–$3,800 indicates strong support, and Glassnode data reveals growing buying pressure among large holders, CryptoNews reports.

Bears caution against over-optimism. Ethereum's weekly chart shows a failed breakout from a three-year horizontal area at $3,950, with bearish engulfing candlesticks and weak RSI levels signaling potential for further declines, according to CCN analysis. A breakdown below $3,950 could confirm a prolonged downtrend, though immediate support at $4,075 remains a critical level to watch.

The broader market context adds complexity. Bitcoin's recent performance—trading near $111,300—has overshadowed Ethereum's struggles, with "Uptober" gains falling short of historical bull market benchmarks. Yet Ethereum's technical resilience, combined with whale activity and accumulation patterns, suggests a potential short squeeze above $4,200 if macroeconomic conditions align favorably, per Coinpedia's live updates.

As the week unfolds, Ethereum's path will hinge on three key factors: the CPI report, ETF flows, and on-chain buying continuation. For now, bulls remain cautiously optimistic, betting that a sustained rebound above $4,450 could reignite broader market enthusiasm.