Key Findings

Several technical analysts have pointed out that the $4,100–$4,450 range is the primary support during this pullback, advising traders to build positions gradually in that zone to optimise the risk-reward ratio 5 9 20.
On-chain data shows that while institutions are collecting assets at lower levels, retail investors are engaging in panic selling. This structural divergence in fund flows suggests that this pullback is more of a healthy shakeout than a trend reversal 4 8 19.
Ongoing net inflows into spot ETFs, along with potential pledged ETFs and bullish targets above $6,600 from major players, provide a solid foundation for a medium- to long-term bullish outlook. Buying the dip aligns with the prevailing macro trend 10 17 23 25.

Support Levels and Potential Entry Zones

@CryptoMichNL has identified a key buy zone between $4,100 and $4,450, cautioning against chasing high prices 5 11.

A technical post from Binance suggests that $4,450 is the first significant support; if breached, the $3,900–$4,050 range is expected to offer stronger buying pressure 9.

Coincentral observes that if the price drops below $4,100, bears might accelerate their moves, although the previous high of $5,000 remains a medium-term target for bulls 20.

Institutional Accumulation vs. Retail Sell-Off

A report from Mitrade indicates that while retail investors are fleeing amidst the downturn, institutions like Bitmine have increased their ETH holdings by over 106 million tokens within 24 hours, signalling a low-level positioning 4.

According to Cointelegraph, ETH pending withdrawal has reached $3.8 billion, while strategic reserves and ETF holdings have surged by 140% since May, significantly absorbing selling pressure 8.

Coinpedia also points out that the negative funding rate in the futures market reflects short-term bearish sentiment, which in turn creates opportunities for institutions to accumulate in line with the trend 19.

Catalysts and Upside Potential

A long-term trend analysis by Cointelegraph suggests that every deep pullback has ultimately proven to be a buying opportunity, with the potential Q4 rally pushing prices above $5,000 10.

Mitrade’s latest forecast places the next target range at $6,000–$6,600, attributing this to institutional buying and improving network fundamentals 17.

Hedge funds believe that as long as ETF inflows remain robust and macro conditions don’t suddenly pivot to a hawkish stance, the chance of a significant pullback is limited; on the contrary, it could be a prime opportunity to add to positions 23.

FastBull, using various valuation models, estimates that if the ETH/BTC ratio reverts to its historical average and ETFs continue expanding, it isn’t out of the question for ETH to reach between $7,200 and $9,600 within the year 25.

Strategy Recommendations and Risks

It is advisable to accumulate positions gradually when the price falls to $4,450 or below; if it breaks below $3,900, consider implementing stop-losses or hedging 5 9 20.
Keep an eye on significant on-chain transfers, daily ETF net inflows, and changes in the staking queue to confirm whether institutions continue their accumulation 4 8.
Medium- to long-term investors might consider dollar-cost averaging or a laddered buying approach, targeting prices between $5,900 and $6,600; however, be prepared to reduce positions if macro conditions shift or ETF inflows drop sharply 17 23.

Disclaimer: The content above is for research purposes only and does not constitute investment advice. Digital asset investments are highly volatile and risky.

(Visit Discover for more)

73 days ago