Ethereum Struggles at Key Resistance as Institutional Accumulation Continues

Ethereum opened October trading near $2,695 after hitting a high of $2,777.33 on October 2 before falling to $2,669.20. This rejection occurred near the upper boundary of an ascending channel. To reach the $3,000 target, Ethereum must clear the $2,775 to $2,800 resistance and maintain support above $2,650. A break below $2,650 could push the price toward $2,400 to $2,450, a zone that previously acted as resistance. The Relative Strength Index (RSI) stands at 58.86, indicating neutral momentum, while the MACD remains weak with a monthly line at -98.3 against a signal line of -66.4.

Institutional interest in Ethereum remains strong, with BlackRock’s iShares Ethereum Trust (ETHA) holding $13.28 billion in cumulative net inflows. Fidelity’s Fidelity Ethereum Fund (FETH) reached $2.42 billion, while Grayscale’s ETH holds $2.03 billion. However, Grayscale’s ETHE recorded cumulative net outflows of $5.41 billion. US spot Ether ETFs saw $55.4 million in net outflows on October 1, following $59.6 million in outflows on September 30, after a week of significant inflows.

Whale wallets control 22.03% of the total Ethereum supply, with addresses holding 17.41 million ETH. In the last month, investors accumulated 2.7 million ETH, valued at $11.3 billion. Exchange supply hit a nine-year low, suggesting long-term storage trends. However, the network’s daily issuance of 2,600 ETH outpaces the burn rate, making Ethereum inflationary with an annual supply growth between 0.2% and 0.8%.

The upcoming Glamsterdam upgrade, scheduled for the Sepolia testnet on October 6, aims to increase Layer 1 throughput. However, macroeconomic factors, such as high US Treasury yields and geopolitical tensions, pose risks. Ethereum’s price remains dependent on buyers defending the $2,650 level against these pressures.