Spot ETF inflows and declining reserves are supporting the bullish outlook for Ethereum. Jack Ma’s reported ETH reserves add optimism to market sentiment. Support at $4,400 and resistance at $4,800 are important levels to watch.
Despite the current market correction, Ethereum’s technical and macro fundamentals point to a near-term comeback.
Strong demand from institutional investors, continued inflows into spot ETFs, and notable accumulation news such as rumors of Jack Ma’s reserves are fueling bullish sentiment among traders and analysts alike.
Influx of institutional investors fuels momentum
The US Spot Ethereum ETF continues to attract a lot of attention, recording $420.9 million in inflows on October 7th, marking the seventh consecutive day of positive inflows.
This inflow not only strengthens liquidity but also signals increased institutional investor confidence, which is likely to support a medium-term recovery towards the $4,900-$5,000 range.
Sustained demand has coincided with a decline in foreign exchange reserves, which have fallen to a three-year low of 17.4 million ETH.
Corporate treasury and EIP-1559 burn mechanisms are further tightening supply, creating a backdrop for potential price acceleration.
Technical pattern suggests a possible breakout in ETH price
Ethereum’s price movements over the past few weeks have shown a mix of consolidation and cautious upward pressure.
The token is trading near $4,450, with short-term support holding near $4,400 to $4,420.
In particular, there is an ascending triangle pattern that has been forming since June, with support rising and a horizontal ceiling around $4,750-$4,800.
This formation suggests that ETH is poised for a breakout if the bulls can regain the $4,800 level, paving the way to the psychological milestone of $5,000.
Despite the volatility, the Relative Strength Index (RSI) is currently hovering around 54, indicating that the market remains balanced and ready for new momentum.
Jack Ma’s Ethereum reserves boost sentiment
Although details remain unconfirmed, news that Jack Ma is building up strategic Ethereum reserves has increased optimism, especially in Asian markets where Ethereum (ETH) adoption and staking activity is high.
Jack Ma is building a strategic Ethereum reserve.
I’m definitely not selling it. pic.twitter.com/mq2THUv0xA
— Crypto Rover (@rovercrc) October 7, 2025
The combination of an iconic company’s accumulation and sound technological position is generating renewed interest among retail and institutional investors.
This report complements continued ETF inflows and declining exchange balances, lending further confidence to the bullish narrative.
Key Ethereum price levels to watch
Ethereum’s recent correction from $4,800 to around $4,450 highlights that the market remains extremely volatile.
The hourly chart shows resistance near $4,600 and key support levels between $4,400 and $4,420.
If ETH fails to hold the $4,400 support, a further fall to $4,320 and even $4,150 is possible.
However, analysts argue that these declines look more like a momentum reset than a trend reversal, especially seeing as even Bitcoin (BTC) is witnessing a similar retest after hitting an all-time high (ATH) of over $126,000.
As for Bitcoin, some economists predict it could reach $140,000 by the end of October, which, as always, could lift overall crypto market sentiment and boost Ethereum’s price outlook.
If Ethereum price sustains above $4,400, the bulls could reassert control and propel the token toward the next major target near $4,950-$5,050.
