Ethereum experienced strong ETF inflows this week, even as the ETH price USD pulled back from recent highs. The market now faces a key technical test near $4,400 and possibly the $4,250–$4,300 zone, where buyers have shown early signs of defense. Bulls are eyeing new highs — but is $5,000 within reach for ETH or an impossible ceiling?
On October 7, Ethereum exchange-traded funds (ETFs) recorded a combined inflow of approximately $420.9 million, with BlackRock contributing $437.5 million — the largest single-day addition among all issuers.
(Source: Sosovalue)
This marks one of the strongest daily accumulation events for ETH since ETF trading began, signaling continued institutional demand despite short-term market volatility. However, price action diverged from the inflow data, as the ETH price USD faced rejection from the $4,750–$4,800 resistance range, leading to a moderate retracement.
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Ethereum’s recent decline aligns with a 6.5% pullback from the local top, following a bearish divergence on the four-hour chart. The token fell below $4,500, finding temporary support around $4,400, a level that has acted as a pivot in previous trading sessions.
ETH now trades near $4,461. Defending this level is crucial, or the next possible steps are the $4,250-4,200 support area, which aligns with strong bid zones observed. A sustained hold above this range could confirm a short-term reversal pattern and potentially open the way for another test of the $4,750–$4,800 resistance.
Failure to maintain this support, however, may trigger a deeper correction toward $4,100–$4,000, where significant order blocks and historical demand exist on the daily timeframe.
(Source: Coingecko)
The recent ETH retracement coincided with Bitcoin’s dip below $121,000, while continued its upward momentum (with a recent ATH), drawing short-term market focus toward the BSC ecosystem as traders rotated capital across large-cap altcoins.
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Despite near-term weakness, on-chain indicators continue to support a constructive long-term outlook for Ethereum. Data from CryptoQuant shows that total exchange reserves have declined to approximately 16.1 million ETH, representing a 25% reduction since 2022. This consistent downtrend in exchange-held supply suggests that investors are moving coins off centralized platforms and into staking contracts, self-custody wallets, and institutional-grade custodians.
