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Ethereum News Update: Institutions Shape Ethereum’s Future Amid U.S. Investor Pullback

Ethereum News Update: Institutions Shape Ethereum’s Future Amid U.S. Investor Pullback

Bitget-RWA2025/10/31 19:44
By:Bitget-RWA

- Ethereum faces price decline risks below $3,700 as U.S. investor demand wanes amid Fed uncertainty and profit-taking, per FXStreet analysis. - BlackRock's $72.5M ETH ETF inflow contrasts with 158,374 ETH outflows since October 8, highlighting institutional dominance over retail sentiment. - Coinbase's 9% Q3 ETH holdings increase and BitMine's 2.61% supply accumulation reinforce Ethereum's store-of-value narrative. - Upcoming Fusaka upgrade (Dec 3) with EIP-7594 and blob capacity expansions could catalyze

Ethereum (ETH) is under increasing strain as enthusiasm from U.S. investors diminishes, with technical signals hinting at a possible drop toward $3,500 if crucial support fails to hold. Recent figures reveal a notable decrease in both spot and derivatives demand, a situation worsened by uncertainty surrounding Federal Reserve decisions and investors locking in profits, as outlined in

. At the same time, major institutions such as and are continuing to influence Ethereum’s direction through ETF activity and on-chain accumulation, underscoring the intricate relationship between market mood and structural shifts, according to .

Ethereum News Update: Institutions Shape Ethereum’s Future Amid U.S. Investor Pullback image 0

On October 27, Ethereum spot ETFs saw net inflows of $134 million, with BlackRock’s ETHA leading at $72.5 million in purchases, based on

. However, this comes after a broader outflow trend since October 8, amounting to 158,374 , as highlighted by FXStreet. The Coinbase Premium Index dropped to -2.8%, indicating weaker demand on Coinbase compared to other platforms, FXStreet further noted. Likewise, the annualized basis for ETH CME Futures with expiries over six months declined to 3.0%, pointing to less bullish sentiment, according to the same FXStreet report.

BlackRock’s influence in the ETF sector goes beyond

, as its Ethereum offerings have attracted substantial inflows even amid general market caution, according to . The asset manager’s $72.5 million ETH acquisition through its spot ETF highlights growing institutional trust in Ethereum’s role within decentralized finance (DeFi) and tokenization, as reported by Cryptobriefing. This is consistent with Ethereum’s ongoing momentum, with its ETFs drawing $11.84 billion in inflows so far this year—while Bitcoin’s $28.1 billion in flows are almost entirely reliant on BlackRock, Coinotag observed.

Coinbase’s Q3 2025 financials showed a 9% quarter-over-quarter rise in Ethereum holdings, with the exchange accumulating 11,933 ETH and 2,772 BTC, according to

. The company’s targeted accumulation, along with expanded institutional staking services for , , and other proof-of-stake coins, points to a move toward more direct crypto exposure, as reported by . Meanwhile, BitMine’s purchase of 3.16 million ETH—representing 2.61% of the total supply—further supports Ethereum’s reputation as a store of value, according to .

Technical analysis shows ETH is currently trading in a downward channel, with a break below $3,700 potentially leading to a fall toward $3,470, FXStreet cautioned. Although large holders have resumed accumulating, adding 210,000 ETH in a single week, open interest remains unstable, dropping to 12.4 million ETH on Friday after a short-lived recovery. On a positive note, Ethereum developers have scheduled the Fusaka upgrade for December 3, which will introduce scalability-focused Ethereum Improvement Proposals (EIPs) such as EIP-7594, according to an

. This upgrade, together with planned increases in blob capacity in December and January, could help spark a recovery if institutional interest returns.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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