Ethereum (ETH) finds itself trading at approximately $2,367 on October 24, clinging to a pivotal rising trendline that has provided support since the summer’s low. After opening near $2,384, the price dipped to around $2,356 before a slight recovery, showing a decline of about 0.7% at the time of reporting.
Despite the drop from a late-September peak of nearly $2,800, the recovery that began in June remains intact, with ETH positioned almost directly on the trendline that has underpinned its recent performance.
Analyst Ted Pillows has highlighted the importance of the $2,350 support level for Ethereum. He warns that a daily close below this critical threshold could push the price down to the range of $2,200 to $2,250.
This crucial support zone coincides with the historical resistance encountered in the mid-$2,300s, creating a battleground for bulls attempting to defend the trendline. Should buyers succeed in maintaining this level, a potential bounce back toward $2,450 to $2,500 could be on the horizon.
However, technical indicators suggest that the momentum currently leans bearish. The daily Relative Strength Index (RSI) sits at 37.18, nearing the oversold territory but still above 30. The Moving Average Convergence Divergence (MACD) indicates a negative trend, with the line at -50.4 falling below its signal line at -40.9. Market watchers will be keenly observing the $2,350 level, as a clean break could pave the way for further declines to $2,250 to $2,300.
ETFs Experience Return to Inflows
In a glimmer of positivity, U.S. spot Ether exchange-traded funds (ETFs) recorded net inflows of $4.4 million on October 23, reversing the previous day’s substantial withdrawal of $110.6 million. Notably, Fidelity’s FETH attracted $3.6 million, while Morgan Stanley’s MSSE garnered approximately $800,000.
Despite this rebound, the inflows are modest compared to the recent trend, with approximately $220.7 million exiting the funds over the five days leading up to October 23. Over the last 30 trading days, withdrawals have exceeded $1 billion. Still, these funds collectively hold about 5.9 million ETH, representing roughly 4.8% of the circulating supply, with cumulative net inflows since their inception nearing $12.75 billion.
Network Activity and the Delay of the Glamsterdam Upgrade
On-chain activity remains robust, with Ethereum boasting approximately $49.2 billion in total value locked in decentralized finance (DeFi) and around $143.5 billion in stablecoins. In the past day alone, the network has seen over 540,000 active addresses and approximately 1.89 million transactions.
However, liquidity appears to be weakening. The stablecoin supply has seen a 0.6% decline over the past week, while weekly decentralized exchange (DEX) volume has dropped about 13%. Over the last 30 days, ETH supply has increased by around 86,800 ETH, as issuance outpaced burns.
The staking landscape also impacts supply dynamics, with 43.8 million ETH currently held in active validator balances. According to recent data, an estimated 36% of the total supply was staked by the end of Q3.
In a notable development, Ethereum developers have decided to delay the scheduled Glamsterdam testnet activation, originally set for October 26. The postponement stems from security concerns related to EIP-8037 and its interaction with existing smart contracts. The Ethereum Foundation has indicated that additional time is necessary for resolution, but no new activation date has been announced.
While this delay primarily affects testing rather than the Ethereum mainnet, it underscores the ongoing challenges faced by developers in ensuring the network’s security. To regain upward momentum, ETH will need to reclaim key resistance levels starting at $2,500, progressing towards $2,600, and ultimately targeting the $2,700 to $2,800 range.
