Ethereum Could Gain Momentum After $421M ETF Inflows, Shrinking Exchange Reserves

Ethereum gains resilience with $421M in ETF inflows, falling exchange reserves, and strong institutional demand driving ￰0￱ Ethereum ETFs recorded $421 million in inflows on October 7, extending a seven-day institutional buying streak that tightened circulating supply and helped ETH consolidate near $4,450, supporting a potential recovery toward the $4,900–$5,000 ￰1￱ ETFs added $421M on Oct 7, marking seven straight days of ￰2￱ reserves fell to 17.4 million ETH, the lowest since 2022, highlighting reduced available ￰3￱ volume rose 27% to $51.9B; futures volume jumped 54% to $124.2B, while open interest eased 5.5%. Ethereum ETF inflows surge $421M on Oct 7, tightening supply and supporting price consolidation—read expert analysis and trade signals ￰4￱ is driving Ethereum’s recent strength?

Spot Ethereum ETF inflows are the primary driver of recent strength, supplying steady institutional demand that absorbs circulating ETH and lifts accumulation by public ￰5￱ reserves have dropped sharply, reinforcing a tighter supply backdrop while technical setups show balanced momentum near $4,450. How large were the ETF inflows and what do they mean for supply? On October 7, ￰6￱ Ethereum ETFs recorded $421 million in net inflows, continuing a seven-day ￰7￱ ETF holdings exceeded $30 billion, with roughly $803 million added in the prior ￰8￱ flows coincide with exchange reserves declining to 17.4 million ETH from 28.8 million three years ago, indicating institutional and corporate accumulation reduced liquid ￰9￱ Asked Questions How does ETF accumulation affect Ethereum price dynamics?

ETF accumulation can reduce circulating supply and increase demand stability, particularly when combined with on-chain burning ￰10￱ ETFs holding a growing share of available ETH, short-term liquidity tightens, which can support higher price floors during market ￰11￱ on-chain metrics best show reduced supply pressure? Exchange reserves and public company holdings are key ￰12￱ at 17.4 million ETH are at three-year lows, while public companies hold about 3.6 million ETH. EIP-1559 burns also remove ETH from circulation, contributing to a gradual deflationary trend.) indicate consolidation rather than a decisive trend ￰13￱ volume increased 27% to $51.9 billion, suggesting sustained market ￰14￱ volume rose 54% to $124.2 billion while open interest fell 5.5% to $60.3 billion (Coinglass data), implying leveraged positions were reduced ahead of potential renewed ￰15￱ indicators: When could Ethereum test prior highs?

Ethereum is holding short-term support near $4,313 with immediate resistance around $4,731 (upper Bollinger Band). The Relative Strength Index sits near 53, signaling balanced ￰16￱ buyers push above $4,700 and sustain volume, a retest of $4,900–$5,000 becomes likely. Conversely, a break below $4,300 may expose downside toward $3,900. Key Takeaways ETF inflows matter : $421M on Oct 7 extended a 7-day buying streak, tightening ￰17￱ tightened : Exchange reserves dropped to 17.4M ETH, lowest since ￰18￱ balance : Momentum is neutral; a move above $4,700 could trigger a push toward $5,000.

Conclusion Ethereum’s recent resilience is anchored in robust institutional demand from spot ETFs and declining exchange reserves, reinforcing a tighter supply ￰19￱ indicators show consolidation with upside potential if inflows and buying pressure ￰20￱ ETF flows, exchange reserves, and volatility for trading signals and allocation decisions. , "description": "Spot Ethereum ETFs recorded $421M in inflows on Oct 7, lowering exchange reserves and supporting ETH consolidation near $4,450 amid higher volumes and changing futures metrics.", , Published: 2025-10-08 | Updated: 2025-10-08