Quick overview

Live ETH/USD Chart

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Ethereum is becoming more resilient due to $421 million in ETF inflows, declining exchange reserves, and strong institutional demand. The recent seven-day streak of institutional buying has reduced circulating supply and helped stabilize ETH near $4,450.

This trend was extended on October 7 by the $421 million influx into spot Ethereum ETFs. The primary driver of this strength is the inflows into these ETFs, which create steady institutional demand that absorbs circulating ETH and enhances accumulation by public entities.

Although technical indicators suggest balanced momentum around $4,450, the sharp decline in exchange reserves has tightened the supply environment. According to the ETH/USD one-day chart, the altcoin has traded within a narrow range over the past three sessions. ETH has faced resistance at $4,742 since Monday, while finding support near $4,426. This sideways movement reflects a balance between buying and selling pressure, which typically occurs when market volatility decreases.

The Average True Range (ATR), currently measuring price swings over a specific period, stands at 176.54, indicating weak volatility.

A sudden breakout in either direction is often preceded by periods of low volatility, suggesting decreased trader activity but a more stable market overall. If this subdued volatility persists, ETH may remain trapped between its current resistance and support levels. However, if selling pressure intensifies and breaks below the support level, a drop toward $4,211 may occur.

ETH could potentially reach as high as $13,000 this cycle if it follows a pattern similar to that of 2021. Michael Nadeau, founder of the DeFi Report, mentioned on Wednesday that the asset is currently trading 92% above its long-term 200-week moving average, which sits at $2,400. During the last bull run in November, ETH peaked just above $4,000, marking a 492% increase over its long-term average.

Models based on this technical indicator suggest intriguing price targets: if ETH trades at 200% above the 200-week moving average, it could hit $12,000. At 400% above the long-term average—which is only 170% above current levels—it could exceed $12,000.