Ethereum update: institutional momentum builds as ETH faces market volatility
Ethereum remains in focus after a volatile week marked by a $1.7 billion futures liquidation and fresh institutional adoption. While ETH faces resistance near $4,250, whale accumulation and ETF momentum signal long-term strength if markets stabilise.
Ethereum update
Ethereum’s trajectory remains under close watch this week, as the market absorbs fresh developments that could reshape demand for Ether (ETH).
One of the more notable stories is Morgan Stanley’s decision to expand into crypto trading on its E*Trade platform in partnership with Zerohash, which will include Ether alongside Bitcoin and Solana.
This step illustrates how major financial institutions are increasingly treating ETH as a core digital asset in their offerings.
Meanwhile, the market recently endured a broad crypto sell-off that also knocked on Ethereum’s door. The downturn, triggered by a massive $1.7 billion liquidation event across futures exchanges, swept through leveraged positions with ETH absorbing around 30 percent of the pressure.
Ethereum pulled back alongside Bitcoin and other major tokens, reflecting how sentiment remains fragile when leverage is stretched and macro uncertainty looms.
The current bout of weakness, however, should not obscure deeper positive undercurrents in the Ether market.
Whale accumulation is notable: in the past week alone, large holders added approximately $1.73 billion worth of ETH to their balances, signalling conviction from long-term players even as short-term traders unwind.
At the same time, inflows into Ethereum as an institutional asset are gaining momentum, helped by smoother regulatory paths for crypto ETFs in the US and rising interest in tokenised asset vehicles.
All this places Ether in a delicate balancing act. If markets stabilise, ETH could recapture momentum as institutional flows and usage narratives assert themselves.
But if macro shocks or regulatory headwinds emerge, further downside cannot be ruled out given how crowded some positions remain.
Ether bullish case:
Ether continues its gradual ascent from last week's $3,826.75 low but seems to be short-term struggling around the early September lows in the $4,250.00 region.
Were it to be overcome, the September resistance line at $4,352.00 would be next in line, followed by the 55-day simple moving average (SMA) at $4.399.77.
Ether bearish case:
Were Ether to fall through its mid-August and 22 September lows at $4,063.65-to-$4,082.96 and close below this area on a daily chart basis, last week's low at $3,826.75 may be revisited.
Only a major bearish reversal and fall through the next lower early August low at $3,356.65 would increase the odds of a medium-term top forming, though.
In this scenario the area between the February-to-June highs at $2,879.45-to-$2,733.27 may be hit.
Ether daily candlestick chart
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