Ethereum Hovers Near $3,800 as ETF Outflows Hit $145M Ahead of Inflation Data
Ethereum's been swinging around $3,800 as traders wait for the US inflation report.
Quick overview
- Ethereum is currently trading around $3,800 as traders await the US inflation report, with trading volume increasing by 33%.
- The Ethereum Foundation's recent $650 million move triggered significant profit-taking and potential price volatility, with analysts predicting either a rise to $5,000 or a drop to $2,850.
- Spot Ethereum ETFs have experienced substantial outflows, indicating a lack of institutional confidence and contributing to Ethereum's price stagnation.
- The upcoming US inflation data is seen as a crucial factor that could influence Ethereum's market direction, with a cooler reading potentially attracting buyers.
Ethereum’s been swinging around $3,800 as traders wait for the US inflation report. Trading volume jumped 33%, showing people are ready to move but also nervous about which way this goes.
The Ethereum Foundation moved $650 million recently, which kicked off about $700 million in profit-taking and liquidations of long positions. Analysts see two paths from here: a breakout toward $5,000 or a drop to $2,850 if support cracks.
Crypto markets are stuck in neutral right now. Ethereum dropped about 4.8% over the past week while Bitcoin sits just above $108,000. Everyone’s waiting on the Consumer Price Index release to see where things head next.
Spot Ethereum ETFs aren’t helping. They shed $145 million in a single Monday after losing roughly $311 million the week before. On October 22 alone, outflows hit $18.77 million. ETF trackers show money leaving in six of the past eight trading days.
Those outflows matter because they show institutions backing away from ETH through regulated products. Even with Ethereum’s fundamentals intact, the lack of fresh ETF money creates a gap and points to weak short-term confidence.
The US inflation data is the big event everyone’s watching. The government shutdown delayed the release to October 24, making it the next major macro catalyst. If inflation runs hot, it could kill hopes for rate cuts and hurt risk assets like Ethereum. A cooler reading might bring buyers back.
Ethereum isn’t just reacting to crypto news anymore. It’s tied to broader macro signals. The ETF outflows and price consolidation suggest many traders are sitting on their hands until they see that inflation number.
Ethereum pushed for $4,000 but couldn’t get through. That $4,000 to $4,300 range keeps bringing out sellers every time. Now back around $3,800, some analysts warn of a correction toward $3,100 if buyers don’t show up. Technical charts point to a bear flag pattern, which usually means more downside if momentum builds that way.
A clean break above $4,000 would flip sentiment bullish. But negative buying volume on spot exchanges suggests the current price doesn’t have strong conviction behind it.
Right now, institutions are picking Bitcoin over Ethereum. Bitcoin funds recovered quicker from the outflows. Ethereum’s institutional backing? Not as solid. You’ve got Bitcoin as the go-to risk play, while Ethereum deals with more short-term questions even though its ecosystem is strong.
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