Ethereum (ETH) is back in the spotlight after Fidelity customers bought around 36,460 ETH ($154.6 million), signaling renewed institutional demand even as spot ETH ETFs saw gigantic redemptions.
Before stabilizing around $4,100, the second-largest cryptocurrency briefly dipped below $4,000 this week, but several analysts say the pullback puts ETH in a key “buy zone” ahead of a potential push toward up-to-date highs.
ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview
Fidelity steps in when ETFs see redemptions
Fidelity’s reported purchase sheds airy on a growing trend as classic finance continues to boost exposure to the Ethereum shrewd contract ecosystem, yield staking and tokenization benefits.
The move contrasts with the latest ETF flow picture, where spot ETH products saw an outflow of approximately $428 million in one day, of which $310 million came from the BlackRock fund. While redemptions have had a near-term price impact, primary market creations such as the Fidelity purchase could reduce available supply and stabilize spot liquidity.
Outflows and liquidations test the nerves
Macroeconomic swings and tariff headlines helped trigger a keen selloff, sending ETH down 6.5% on Oct. 14 and triggering $145 million in liquidations within 24 hours, according to derivatives trackers.
This forced a pullback that pushed the price above the $4,000 mark, but technicians note that ETH is retesting prior support-turned-resistance and continues to form a bullish flag structure on the higher time frames.
Popular trader Michael van de Poppe says ETH probably only needs a higher low to re-establish momentum, expecting a recovery towards first $5,000 and then $6,250 if buyers regain control.
Ethereum Price Outlook: Key Levels to Watch
In the near future bulls want to see Ethereum price the balance returned above $4,000-$4,211, followed by a decisive break of the psychological $5,000 level to unlock the $6,250 target that many chartists set using tools like Murrey Math and forecasts of measured moves.
On the other hand, investors believe that transient support is at $3,626; a daily close below $3,425 would weaken the bullish structure and argue for deeper consolidation.
Despite major outflows, Fidelity’s inflow highlights continued institutional interest in Ethereum’s role in DeFi, NFTs, and real-world asset tokenization, as well as structural tailwinds from yield staking.
If ETF redemptions cold and spot demand returns, the recent decline in ETH could be indicative of a buy-on-pull setup on the path towards up-to-date cycle highs.
Cover photo from ChatGPT, ETHUSD on Tradingview
