- Spot ETF inflows and shrinking reserves boost Ethereum’s bullish outlook.
- Reports of Jack Ma’s ETH holdings have added optimism to market sentiment.
- $4,400 support and $4,800 resistance are key levels to watch.
Despite the current market correction, Ethereum’s technicals and macro fundamentals point toward a possible short-term rebound.
Strong institutional demand, continued inflows into spot ETFs and notable accumulation headlines—including the unverified report of Jack Ma’s Ethereum reserve—have strengthened bullish sentiment among traders and analysts.
Institutional inflows are driving momentum
U.S. Ethereum spot ETFs have continued to attract significant attention, recording $420.90 million in inflows on October 7, marking the seventh consecutive day of positive flows.
These inflows not only deepen liquidity but also signal growing institutional confidence, which is likely to support a medium-term recovery toward the $4,900–$5,000 range.
The sustained demand has coincided with a drop in on-chain reserves, which have fallen to a three-year low of 17.4 million ETH.
Corporate treasuries accumulating ETH and supply-reducing mechanisms like EIP-1559 burning are tightening available supply, creating a backdrop for potential price acceleration.
Technical patterns suggest a potential breakout for ETH
Ethereum’s recent price action shows a mix of consolidation and modest upside pressure.
The token has been trading near $4,450, with short-term support holding around $4,400–$4,420.
Notably, a rising triangle pattern has formed since June, characterized by ascending support and a horizontal ceiling around $4,750–$4,800.
This structure implies ETH could be poised for a breakout if bulls reclaim the $4,800 level, potentially opening the path to the psychological $5,000 milestone.
Despite volatility, the Relative Strength Index (RSI) sits near 54, suggesting the market remains balanced and ready for renewed momentum.
Jack Ma’s reported Ethereum reserve boosts sentiment
Although details remain unverified, the news that Jack Ma may be building a strategic Ethereum reserve has fueled optimism, particularly across Asian markets where ETH 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
Keen institutional and private accumulation, alongside constructive technical positioning, has renewed interest from a wide range of investors. The report adds a layer of confidence to the bullish narrative, complementing ongoing ETF inflows and declining exchange balances.
Key Ethereum price levels to monitor
Ethereum’s recent pullback from $4,800 to roughly $4,450 underscores ongoing volatility.
Hourly charts indicate resistance near $4,600 and crucial support between $4,400 and $4,420.
If ETH fails to hold the $4,400 support, further downside toward $4,320 or even $4,150 could occur.
Analysts argue these declines are more likely momentum resets than structural trend reversals, especially as Bitcoin has experienced a similar retest after reaching new highs above $126,000.
For Bitcoin, some economists have posited targets as high as $140,000 later this month, a move that typically lifts overall crypto market sentiment and could improve Ethereum’s price outlook.
Should Ethereum hold above $4,400, bulls may regain control and push the token toward the next major targets in the $4,950–$5,050 zone.