The cryptosphere is closely watching Ethereum (ETH) as the second-largest cryptocurrency by market capitalization shows resilience to market shocks.

While spot ETF outflows are a concern in some quarters, fundamental network data and technical charts paint a cautiously positive picture, with analysts pointing to a potential move towards the $4,400 level.

Ethereum Fund Outflows and Institutional Sentiment

Despite the recent recovery in ETH prices, institutional sentiment appears to be more strong even as Ethereum-linked exchange-traded funds (ETFs) are seeing significant outflows.

The data shows this Spot Ethereum ETFs during the week, it saw a net outflow of approximately $508 million, marking one of the largest weekly payouts in their history. This reflects a broader shift in investor behavior: while the inflows of time-honored crypto funds have declined, the margins of institutional belief remain unchanged.

On the one hand, redemptions suggest a short-term cooling of enthusiasm for ETH among ETF investors. On the other hand, this rotation may reflect a strategic recalibration rather than a wholesale withdrawal of institutional capital.

ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview

Sturdy ETH price support and technical setup

From a price and stock perspective, Ether shows signs of stabilization. After a pointed weekly decline of around 12%, the asset has rebounded above the $3,400 level. Analysts have identified key resistance near $3,720, with break targets around $4,400 and further upside towards $4,955.

Technical highlights include:

• Maintaining the USD 3,200-3,350 liquidity zone as support before a rebound.
  
• Break of the bearish trendline near $3,350 with the removal of the 50% Fibonacci retracement from the recent decline.
  
• Momentum indicators such as the MACD and RSI are entering bullish territory, suggesting a rally could occur if resistance levels are broken.

Network basics and catalysts

Beyond price movements, the fundamentals of the Ethereum chain provide reason for optimism. While some metrics are deteriorating, the network’s total value locked (TVL) has declined by approximately 24% over the past 30 days to approximately $74.2 billion.

On the other hand, Ethereum’s app revenues reached record highs already in mid-October, driven by stablecoin activity and growing apply of the network’s “economic machine”.

The key upcoming catalyst is the plan Fusaka upgrade.scheduled for early December, which is expected to boost the scalability and security of the Ethereum network, potentially increasing long-term value drivers.

While near-term challenges persist, including ETF outflows and macroeconomic uncertainty, the confluence of forceful technical structure, institutional interests and network modernization have made some analysts feel comfortable setting higher targets.

Cover photo of the ChatGPT, ETHUSD chart on Tradingview