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Ethereum News Update: Institutions Accumulate as ETFs See Outflows—A Critical Juncture for Ethereum

Ethereum News Update: Institutions Accumulate as ETFs See Outflows—A Critical Juncture for Ethereum

Bitget-RWA2025/10/24 11:30
By:Bitget-RWA

- Ethereum trades near $3,880 amid diverging institutional views, with BitMine Immersion Technologies accumulating 3.24M ETH (2.7% supply) as Tom Lee targets $10,000–$12,000 by 2025. - Price slips below $3,900 support after $500M ETF outflows and Ethereum Foundation's $650M ETH transfer to exchange-linked wallet. - Analysts highlight $4,050–$4,100 resistance cluster and $3,840 critical support, while SharpLink Gaming's $3.5B ETH treasury underscores institutional interest. - VanEck's Lido staked ETH ETF fi

Ethereum is experiencing increased selling activity as it hovers around $3,880, with differing opinions from institutional investors and market analysts about its short-term outlook. Blockchain data indicates a notable uptick in institutional

accumulation. Recently, purchased 203,826 ETH—valued at roughly $820 million—raising its total holdings to 3.24 million ETH, which accounts for 2.7% of the current supply, according to . Under the leadership of seasoned analyst Tom Lee, the company has emerged as a significant force in the Ethereum space. Lee has characterized the recent price dip as a "buying opportunity" and reaffirmed his long-term forecast of $10,000–$12,000 by 2025, as noted by .

Even with strong institutional backing, Ethereum has dropped below important resistance points, now testing support at $3,900 after reaching an intraday peak of $4,100. This downturn follows substantial withdrawals from U.S. spot Ethereum ETFs, which saw a net outflow of $145.6 million on October 20, contributing to a two-week total nearing $500 million, according to

. Experts link this weakness to inconsistent whale movements and a recent transfer of 160,000 ETH—worth $650 million—by the Ethereum Foundation to a wallet historically associated with exchange sales.

Ethereum News Update: Institutions Accumulate as ETFs See Outflows—A Critical Juncture for Ethereum image 0

Nonetheless, some analysts maintain a cautiously positive outlook. Crypto strategist Ali Martinez has raised his short-term target to $4,440, citing Ethereum’s recovery from a downward channel that began in August. Trader Merlijn compared Ethereum’s recent price behavior to gold’s breakout in 2024, suggesting a possible rally to $10,000 if current resistance is overcome. Meanwhile, SharpLink Gaming expanded its treasury by acquiring 19,271 ETH at an average price of $3,892, bringing its total to 859,853 ETH, valued at $3.5 billion, as reported by

. The company’s recent $76.5 million fundraising effort highlights the growing institutional interest in Ethereum as a strategic holding.

Technical analysis points to a pivotal moment for Ethereum. The asset is confronting a significant resistance zone between $4,050 and $4,100, and a move above this range could trigger a rally toward $4,220–$4,320, according to a

. On the other hand, if Ethereum fails to maintain support above $3,840, further declines toward $3,680 are possible, as cautions. Indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show that bearish momentum still prevails, though there are signs of slight improvement, according to .

Regulatory shifts are also influencing the landscape. VanEck’s proposal for a Lido staked Ethereum ETF—which would offer access to staking rewards—has introduced new liquidity considerations. Although the SEC’s latest guidance on proof-of-stake activities has removed some regulatory barriers, the ETF’s approval is still pending.

Institutional buying and broader economic factors, such as trade policies from the Trump administration era, continue to influence Ethereum’s story. While short-term volatility persists, long-term optimists believe that increased corporate treasury purchases and ETF adoption could help stabilize the market, potentially setting the stage for significant price gains in the months ahead.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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