Ethereum (ETH) is back in the spotlight after Fidelity customers purchased approximately 36,460 ETH ($154.6 million), signaling renewed institutional demand even as spot ETH ETFs saw large redemptions.
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Before stabilizing around $4,100, the second-largest cryptocurrency briefly fell below $4,000 this week, but several analysts say the pullback puts ETH in a key “buy zone” ahead of a potential push to new highs.
ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview
Fidelity steps in as ETFs see redemptions
Fidelity’s reported purchase highlights a growing trend as traditional finance steadily increases its exposure to Ethereum’s smart contract ecosystem, yield staking and rising tokenization.
The move contrasts with the latest ETF flow chart, where spot ETH products saw around $428 million in outflows in a single day, led by $310 million from BlackRock’s fund. Although buybacks have weighed on prices in the short term, primary market creations like the Fidelity purchase can tighten available supply and stabilize spot liquidity.
Cash outflows and liquidations put nerves to the test
Macroeconomic nervousness and tariff headlines helped spark a sharp selloff, sending ETH down 6.5% on Oct. 14 and triggering $145 million in liquidations in 24 hours, according to derivatives trackers.
This forced unwind pushed price through the $4,000 handle, but technicians note that ETH is retesting prior resistance-turned-support and continuing to create a bull flag structure on higher timeframes.
Popular trader Michael van de Poppe says ETH likely just needs a higher low to reaffirm its momentum, eyeing a recovery towards $5,000 first and then $6,250 if buyers regain control.
Ethereum Price Outlook: Key Levels to Watch
In the near term, bulls want to see an equilibrium in Ethereum price returning above $4,000 to $4,211, followed by a decisive breakout of the psychological $5,000 level to unlock the $6,250 target that many chartists are signaling via tools like Murrey Math and measured move projections.
On the downside, traders are eyeing $3,626 as interim support; a daily close below $3,425 would shake the bullish structure and argue for deeper consolidation.
Despite major outflows, Fidelity’s influx highlights continued institutional interest in Ethereum’s role in DeFi, NFT, and real-world asset tokenization, as well as the structural tailwind related to yield staking.
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If ETF redemptions cool and spot demand returns, ETH’s recent decline could prove to be a buy-withdraw pattern on the path to new cycle highs.
Cover image of ChatGPT, ETHUSD on Tradingview
