Ethereum Eyes $5,000 as Institutional Buyers Return

Ethereum climbed to $4,716 on Tuesday before dipping back down. That caps off a strong week where the token gained roughly 11%.

Quick overview

  • Ethereum reached $4,716 before a slight dip, marking an 11% gain over the week after a challenging September.
  • Daily trading volumes are around $40 billion, with Ethereum's market cap at approximately $570 billion, boosted by Bitcoin's recent highs.
  • Institutional interest is rising, with U.S.-listed Ethereum ETFs attracting $177 million on Monday and nearly $1.5 billion in net inflows over six days.
  • Traders are watching if $4,700 can hold as support, potentially leading to a test of $5,000, while continued ETF investment could stabilize the market.

Ethereum climbed to $4,716 on Tuesday before dipping back down. That caps off a strong week where the token gained roughly 11%. After a rough September that saw prices dip below $4,000, the recovery has been sharp.

Trading activity tells part of the story. Daily volumes are running at about $40 billion right now. Ethereum’s market cap is back around $570 billion. Bitcoin’s recent push to new record highs has certainly lifted the whole space, but Ethereum’s rebound stands out among the majors.

What’s getting attention is the return of institutional buyers. U.S.-listed Ethereum ETFs pulled in around $177 million on Monday. Over the last six trading days, these funds have seen close to $1.5 billion in net inflows. That’s not just a one-off spike. It points to real money coming in with a longer view.

The charts are looking better too. Ethereum broke above a downtrend that kept it stuck through most of September. It’s also holding above its 30-day average around $4,300, which used to be a ceiling. Now it looks more like a floor. Momentum gauges are sitting in the middle, so there’s still space to move higher if buyers stick around.

Traders are now focused on whether $4,700 can hold as support. If it does, a test of $5,000 comes into play. That’s a level Ethereum last saw mid-year before sellers took over. On the downside, there’s support between $4,100 and $4,200. Stronger buying would probably show up closer to $3,800 if things pull back that far.

The big variable is whether ETF money keeps flowing in. If institutions stay active through October, this could turn into something more durable than the usual volatility we’ve seen. That would be a shift worth watching.

For now, the combination of better price action and steady institutional interest has Ethereum set up for a possible run at key levels above. Whether it gets there depends mostly on how long this buying appetite lasts.

ABOUT THE AUTHOR See More
Sophia Cruz
Financial Writer - Asian & European Desks
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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