Ethereum Fails to Break Above $2,720, Glamsterdam Upgrade Looms

Ethereum is once again testing the upper boundary of its range, but a clean breakout remains elusive. The cryptocurrency is under pressure from ETF outflows and selling from early holders. According to SoSoValue, U.S. spot Ethereum ETFs recorded approximately $138 million in net outflows over the week from September 28 to October 2. However, this scale of outflows does not yet indicate institutional capitulation.

A significant early Ethereum holder has also been selling, transferring 13,330 ETH worth about $36.37 million to Coinbase after a period of limited activity. This investor originally received roughly 170,000 ETH at a price of around $0.311, putting the initial cost of the position near $52,700. Following the latest sales, most of the holdings have already been liquidated, leaving a remaining balance of around 1,484 ETH.

Ethereum has several potential fundamental catalysts this week. On October 6, the Glamsterdam upgrade is scheduled to activate on the Sepolia testnet. The upgrade includes enshrined proposer-builder separation, block-level access lists, and changes to gas pricing aimed at further scaling Ethereum's Layer 1. A mainnet date has not yet been set.

The bull-trap scenario outlined earlier has partially played out, and the risk of further weakness remains. If ETH slips back below $2,720 and buyers fail to reclaim the level quickly, support near $2,630 would become the next target. A break below that area could extend the correction toward $2,550.