- Inflows into spot ETFs and declining exchange reserves bolster a bullish outlook for Ethereum.
- Reported ETH holdings attributed to Jack Ma add optimism to market sentiment.
- Support at $4,400 and resistance at $4,800 are key levels to watch.
Despite the ongoing market correction, Ethereum’s technical and macro fundamentals point to a potential recovery in the near term.
Strong institutional demand, persistent inflows into spot ETFs, and notable accumulation headlines — including reports of a strategic ETH reserve tied to Jack Ma — have strengthened bullish sentiment among traders and analysts.
Institutional inflows driving momentum
U.S. spot Ethereum ETFs continue to attract significant attention. On October 7, they recorded net inflows of $420.90 million, marking a seventh consecutive day of positive flows.
These inflows not only enhance liquidity but also signal growing institutional confidence, which could support a medium-term recovery toward the $4,900–$5,000 range.
Steady demand has coincided with declining exchange reserves, which have fallen to a three-year low of 17.4 million ETH.
Corporate treasury purchases and the EIP-1559 burn mechanism are further tightening supply, creating a backdrop for potential acceleration in price.
Technical patterns point to a possible ETH breakout
Ethereum’s price action over recent weeks shows a blend of consolidation and cautious upward pressure.
The token is trading near $4,450 with short-term support holding around $4,400–$4,420.
Notably, since June an ascending triangle has formed, featuring rising support and a horizontal ceiling near $4,750–$4,800.
This formation suggests ETH could be poised for a breakout if bulls reclaim the $4,800 level, opening the path toward the psychological $5,000 milestone.
Despite volatility, the Relative Strength Index (RSI) sits around 54, indicating the market remains balanced and potentially ready for renewed momentum.
Jack Ma’s reported Ethereum reserve lifts sentiment
While details remain unverified, reports that Jack Ma is building a strategic Ethereum reserve sparked optimism, particularly across Asian markets where Ethereum adoption and staking activity are strong.
Jack Ma is building a strategic Ethereum reserve.
I’m definitely not selling. pic.twitter.com/mq2THUv0xA
— Crypto Rover (@rovercrc) October 7, 2025
Kombination of symbolic corporate accumulation and solid technical positioning has reignited interest from both retail and institutional investors.
The report complements the ongoing ETF inflows and falling exchange balances, adding another layer of confidence to the bullish narrative.
Key Ethereum price levels to watch
Ethereum’s recent pullback from $4,800 to roughly $4,450 highlights the market’s continued volatility.
Hourly charts show resistance near $4,600 and key support around $4,400–$4,420.
If ETH fails to hold support at $4,400, it could slide further to $4,320 or even $4,150.
Analysts argue these declines are likely momentum resets rather than trend reversals, especially given similar retests observed in Bitcoin following its move to a new all-time high above $126,000.
Should Ethereum remain above $4,400, bulls could regain control and push the token toward larger targets near $4,950–$5,050.