Ethereum posted modest gains on Friday, October 24, with its price supported by significant stablecoin inflows suggesting institutional accumulation, even as broader macroeconomic concerns and mixed technical signals urged caution.
The digital asset Ether (ETH) rose 0.80% over 24 hours to trade at $3,872.11, following a previous close of $3,971.32. This uptick was largely attributed to a substantial $2.1 billion in stablecoin inflows onto the network.
Analysts noted these inflows indicated a “Wyckoff re-accumulation pattern,” where large investors acquire assets without triggering excessive price volatility. This activity is often seen as “smart money” positioning.
Despite the recent price increase, the cryptocurrency faced resistance. Its 24-hour trading volume stood at $36.82 billion, which was 20.17% below its 30-day average. Low trading volume on price rallies often indicates a lack of strong conviction behind the movement.
Ethereum’s technical indicators presented a mixed picture. The asset traded below its 7-day Simple Moving Average (SMA) of $3,906.12, signaling short-term weakness. However, it remained above the projected 200-day SMA at $3,800, a key support level.
The 14-day Relative Strength Index (RSI) was at 45, placing it in a neutral zone and avoiding overbought conditions. The Moving Average Convergence Divergence (MACD) showed a recent bearish crossover, but its histogram was contracting, hinting at a potential reversal if trading volume were to increase.
The daily chart also revealed a symmetrical triangle consolidation pattern. A potential bullish breakout could occur if ETH manages to rise above $3,900. Key support levels were identified at $3,800 and $3,700, while resistances were found at $3,971 and the psychological $4,000 mark.
Ethereum maintained a robust market capitalization of $467.35 billion, solidifying its dominant position among alternative cryptocurrencies. Its Total Value Locked (TVL) in decentralized finance (DeFi) applications reached $100 billion, largely driven by second-layer solutions like Optimism. This high TVL reflects strong real-world utility and demand for decentralized applications built on the Ethereum network.
Daily on-chain transactions climbed to 1.2 million, with 500,000 active holders, reflecting sustained adoption and network engagement. Institutional confidence was further bolstered by recent partnerships, including integrations with major financial players like BlackRock for exchange-traded funds (ETFs).
Despite the positive on-chain developments, the broader market sentiment remained mixed. Macroeconomic pressures continued to weigh on investor confidence. Anticipation for the upcoming U.S. inflation report was a significant factor, with potential for increased capital flows if the data indicated an economic slowdown.
Derivatives markets showed neutral funding rates in perpetual contracts and stable open interest at $35.23 billion, suggesting a lack of extreme leverage. Implied volatility in options hovered around 50%, below historical averages, indicating reduced expectations for drastic price swings.
No reports of hacks or disruptive regulatory changes emerged within the 24-hour period.
Looking ahead, analysts outlined several scenarios. A bullish outcome, with prices potentially ranging from $4,000 to $4,200, was deemed medium probability, contingent on continued on-chain inflows and favorable inflation data. A neutral scenario, with consolidation between $3,800 and $3,950, was considered high probability given stable volume. A bearish scenario, with a fall to $3,600-$3,700, had a low probability, tied to a stronger U.S. Dollar Index (DXY) or hawkish Federal Reserve policies.
The prevailing recommendation for investors remained “HOLD,” balancing solid fundamentals with short-term technical caution and macro risks. Traders were advised to monitor the $3,800 level for potential entry points.