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With large-scale investors clearly regaining confidence in spot ETFs, Ethereum looks to be setting up for a significant institution-driven move. According to data available, Bitcoin spot ETFs saw net inflows of $149 million on Oct. 27, which was the third day in a row that they saw positive capital movement. More significantly, there were zero net outflows from any of the nine active Ethereum spot ETFs, resulting in $134 million in total inflows. This is an uncommon and potent sign of ongoing institutional appetite.
ETH ETFs surge
This surge of inflows comes after the crypto ETF market stagnated in early October, indicating that high-cap assets are currently being favored by capital rotation. This institutional support for Ethereum may serve as the impetus needed to move prices above the crucial $4,200 resistance level, paving the way for a move toward $5,000, which analysts and fund managers are increasingly pointing to as the next sensible price target.
Technically speaking, Ethereum is still in a precarious consolidation stage. For the majority of Q4, the price has been acting as resistance, hovering just below the 200-day moving average. If inflows keep up their current rate, a breakout above this level would probably turn momentum-based buying into a buying spree. Since the market is neither overbought nor oversold, there is room for expansion, as indicated by the RSI close to 51.
In addition to providing liquidity, institutional flows also reflect a change in sentiment. Professional investors are increasingly viewing digital assets as viable long-term exposure in the face of conventional market uncertainty, as evidenced by the steady inflows into both BTC and ETH ETFs. In other words, Ethereum’s journey to $5,000 depends on this institutional momentum, with substantial financial resources as well as on retail participation.
It is not a question of whether, but when, ETH will test the $5,000 mark again if the current inflow trend continues for another week. This is because ETH has the potential to decisively break its resistance ceiling.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team