Key Insights:
- Ethereum price surged more than 2% today and soared past the $4,500 mark.
- The US Spot Ethereum ETF recorded an inflow of $1 billion this week.
- Analysts said that ETH price is gearing up for a breakout to $5,000, if it can break through a key resistance level ahead.
Ethereum price has jumped more than 2% today and traded over the $4,400 mark, amid a broader crypto market rally. This indicates that the traders are now shifting focus towards the altcoins alongside a continuing Bitcoin price rally.
Amid this, expectations are soaring over a potential ETH price rally to $5,000 in the near future. In addition, the recent soaring institutional interest also backs the positive Ethereum price prediction from experts.
For context, the recent US Spot Ethereum ETF fund flow data showed a reversal in the trend of the institutional bets. After prolonged outflows in the prior week, this week the institutions are betting again on the asset.
Simultaneously, the “Uptober” optimism is also in play, as evidenced by the broader crypto market performance this week. BTC price has added robust gains and already soared past the $120k mark, further boosting the investors’ sentiment towards the digital assets.
However, despite the ongoing bullish scenario, market pundits have flagged a key hurdle for Ethereum price. The analysts have highlighted key price levels ahead that ETH price must break through to touch the highly anticipated $5k mark and beyond.
ETH Price Soars as “Uptober” Optimism Comes in Play
ETH price was up around 2.5% at the time of writing, and hovered near the $4,500 mark, with its trading volume jumping 9% to $48 billion. Ethereum price already crossed the $4.5 mark in the last 24 hours and touched a daily high of $4,558.
This recent performance suggests that the investors are betting heavily on the asset. Simultaneously, the Ethereum Futures Open Interest crossed the $60 billion mark, indicating a bullish sentiment among market participants.
Meanwhile, it seems that the current institutional interest also contributed to the recent gains in the asset. According to Farside Investors’ data, Ethereum ETF fund flow turned positive this week, after five consecutive days of outflow last week.
On October 2, the overall fund flow into the investment instrument totaled $307.2 million. The total Ethereum ETF inflow this week through Thursday totaled $$1.06 billion, indicating a sustained interest of the institutions towards the asset.
In addition, the “Uptober” optimism might also have lifted the market sentiment, leading to positive Ethereum price prediction. For context, the digital assets usually provide positive returns in October and through the final quarter of the year.
Although historical performance doesn’t guarantee future returns, investors are hoping for a positive run of the asset.
According to CoinGlass data, the average return of Ethereum price in October is 5%, while in November and December, the average returns are 8% and 7%, respectively.
Ethereum Price Prediction: Analysts Flag Key Levels to Watch
Despite the soaring optimism and positive Ethereum price prediction, market pundits have flagged some key price levels to watch ahead. They noted that if ETH fails to break the level, it might delay the crypto’s journey towards the $5,000 level.
In a recent X post, market expert Ali Martinez said that $4,505 is one of the key resistance levels to watch for Ethereum price.
He noted that if ETH price manages to successfully close above the level, it could trigger a further surge in the asset. However, if it fails to clear this wall, the crypto might consolidate or retrace in the near future.
Echoing a similar sentiment, analyst Donald Dean said that Ethereum price is targeting $5,766 mark. However, he has highlighted the current support at $3,876 as a key support for the asset, which it might hold to avoid a further fall.
In addition, Dean noted that ETH price must close above the $4,955 level to flip the resistance into a major support. Having said that, the investors are now watching these levels closely for the potential next movements of the coin.