Ethereum (ETH), which is currently trading nearly $4,380, has recently surpassed its $4,400 resistance level.
This increase occurred as crypto ETF influx increased and institutional profits increased, and market sentiment suggested a potential long-term bullish trend. However, questions remain as to whether ETH can maintain momentum above $4,300 without facing a short-term fix.
ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview
Ethereum meeting of ETF inflow and facility demand fuel Ethereum
Recent surges are consistent with the wave of capital flowing into exchange trade funds focused on Ethereum. According to Sosovalue, the Eth Spot ETF saw a net inflow of over $80 million and went on to win consecutive games for three consecutive days.
This momentum shows the increase in appeal of Ethereum as the second-largest cryptocurrency, as a key layer of decentralized finance (DEFI) and tokenization.
In the US, October is called the “ETF month,” and regulators are expected to decide on several cryptographic ETFs, including those related to Solana, XRP and Dogecoin.
Meanwhile, regulators in Asian countries like Thailand are working on a framework to grow the Altcoin ETF market. As a result, Ethereum is widely regarded as one of the major beneficiaries of these institutional products other than Bitcoin.
Technical outlook: Bullish but bought
Ethereum’s $4,300 break also shows a technical breakout backed by a sharp rise in trading volume.
Spot volume surged to $7.17 billion, but futures trading jumped to $97.3 billion, up nearly 2% to $59 billion. This suggests that both retail and institutional traders are actively purchasing ETH at the current level.
On the chart, ETH prices are moving away from around $4,380 from the 30-day moving average, bolstering its bullish outlook. However, the relative strength index (RSI) remains at nearly 52 and the signaling ETH is in the bullish zone.
Historically, this often leads to periods of consolidation or mild pullback as traders make profits. Immediate resistance is $4,450-4,500 with strong support close to $4,330-4,350.
Can Ethereum gain momentum?
The rally increased the price of ETH by 9.1%, increasing its market capitalization to $531 billion. However, not all signs are consistently positive. Analysts warned that growth has been stable at 36 million ETH, betting on the slower ETF inflows earlier this year, slowing down the exchange’s stable liquidity.
These risks underline the potential for volatility even as optimism grows. Still, as long as ETH is above $4,300, this trend supports bulls. If ETF inflows continue and risk appetite remains stable, Ethereum could soon challenge a higher resistance level of nearly $4,600, with a $5,000 milestone coming.
For now, on the way to Ethereum’s $4,400, it shows that institutions and traders are willing to place big bets on Uptober’s rally.
Covers ChatGpt and Ethusd images in TradingView
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