Currently trading near $4,380, Ethereum (ETH) recently broke above the $4,400 resistance level, a move that has fueled renewed optimism among investors despite a minor pullback.
The boost occurred as crypto ETF inflows increased, institutional interest grew, and market sentiment suggested a potential prolonged bullish trend. However, questions remain about whether ETH can maintain momentum above $4,300 without facing short-term corrections.
ETF Inflows and Institutional Demand Fuel Ethereum’s Rally
The recent surge coincides with a wave of capital flowing into Ethereum-focused exchange-traded funds. According to SoSoValue, ETH spot ETFs saw over $80 million in net inflows, continuing their winning streak for three consecutive days.
This momentum shows Ethereum’s increasing appeal as the second-largest cryptocurrency and a key layer for decentralized finance (DeFi) and tokenization.
In the U.S., October is being called “ETF Month,” with regulators expected to decide on several crypto ETFs, including those linked to Solana, XRP, and Dogecoin.
Meanwhile, regulators in Asian countries like Thailand are working on frameworks to grow the altcoin ETF market. As a result, Ethereum is widely regarded as one of the leading beneficiaries of these institutional products beyond Bitcoin.
Technical Outlook: Bullish But Overbought
Ethereum’s break above $4,300 also indicates a technical breakout, backed by a sharp increase in trading volumes.
Spot volume surged to $7.17 billion, while futures trading jumped to $97.3 billion, with open interest rising nearly 2% to $59 billion. This suggests that both retail and institutional traders are actively buying ETH at current levels.
On the charts, ETH’s price has moved away from its 30-day moving average around $4,380, strengthening the bullish outlook. However, the Relative Strength Index (RSI) stays near 52, signaling ETH is in a bullish zone.
Historically, this often leads to periods of consolidation or mild pullbacks as traders take profits. Immediate resistance is at $4,450–$4,500, with strong support near $4,330–$4,350.
Can Ethereum Sustain Uptober Momentum?
The rally shows a 9.1% weekly rise in ETH’s price, boosting its market cap to $531 billion. However, not all signs are consistently positive. Analysts warn that staking growth has stabilized at 36 million ETH, ETF inflows slowed earlier this year before this rebound, and stablecoin liquidity on exchanges has decreased.
These risks highlight the potential for volatility even as optimism grows. Still, as long as ETH stays above $4,300, the trend favors the bulls. If ETF inflows continue and risk appetite remains stable, Ethereum could soon challenge higher resistance levels near $4,600, with the $5,000 milestone back in reach.
For now, Ethereum’s break above $4,400 signals that institutions and traders are willing to make significant bets on Uptober’s rally.
Cover image from ChatGPT, ETHUSD on Tradingview
