Ethereum Holds Firm as Spot ETF Inflows Reach $421M, Exchange Reserves Hit 3-Year Low

Spot Ethereum ETFs recorded $421 million in inflows on October 7, extending a seven-day streak of institutional demand.

Exchange reserves dropped to 17.4 million ETH, the lowest in three years, highlighting shrinking circulating supply.

Ethereum consolidates near $4,450, with technical indicators signaling balanced momentum and potential recovery toward $5,000.

Ethereum continues to show strength despite a broader market pullback, supported by consistent institutional inflows. On October 7, U.S. spot Ethereum ETFs recorded $421 million in net inflows, marking the seventh consecutive day of positive activity. This steady demand pushed combined ETF holdings to more than $30 billion, with inflows totaling $803 million in the past month.

Exchange-held Ethereum has fallen to its lowest level since 2022, with reserves now at 17.4 million ETH compared with 28.8 million three years ago. Corporate holdings and ETF accumulation have absorbed much of the available supply. Public companies now collectively hold about 3.6 million ETH. Additionally, the ongoing EIP-1559 mechanism continues to permanently burn a portion of transaction fees, reinforcing Ethereum’s deflationary trend.

Market Performance and Volatility

At the time of writing, Ethereum traded around $4,443, down 5.3% in 24 hours but still up 7% for the week and 3.4% for the month. The price remains only 10% below its August peak of $4,946. Over the past week, ETH fluctuated between $4,133 and $4,748, reflecting consolidation rather than a clear reversal. Trading volume climbed 27% to $51.9 billion, signaling continued market participation despite volatility.

Source: TradingView

According to Coinglass data, Ethereum futures volume surged 54% to $124.2 billion, while open interest declined by 5.5% to $60.3 billion. This reduction in open interest suggests leveraged traders exited their positions, often a sign of cleansing before renewed stability.

Technical Indicators Point to Possible Upside

Ethereum’s daily chart shows the asset holding near $4,450, just above the short-term support at $4,313. The upper Bollinger Band near $4,731 represents the next resistance zone. With the Relative Strength Index at 53, market momentum appears balanced. If buyers sustain pressure above $4,700, a retest of the $4,900–$5,000 range could follow. A drop below $4,300, however, may expose ETH to a decline toward $3,900.

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