Ethereum's recent price action has left investors wondering if its Q4 rally is losing steam. After facing rejection at the $4.8k mark multiple times, the leading altcoin is at a crucial juncture, with its ability to establish a solid base dictating its trajectory for the rest of the year.
Navigating Current Resistance and Key Support
Ethereum has experienced a notable slowdown since its mid-August peak, struggling to break past the $4.8k resistance zone and showing no significant relative strength against Bitcoin. This lack of momentum, coupled with a recent 2.7% pullback, highlights a critical challenge: establishing $4.5k as a reliable support floor. Previous attempts to solidify this level have failed, leading to significant corrections. For ETH to avoid further shakeouts and replicate the strong rallies seen earlier in the year, flipping $4.5k into a robust base is paramount, potentially paving the way for a grind towards $4.7k or even $5k by year-end.
Institutional Stacking Fuels Supply Shock
Despite the short-term price struggles, underlying structural forces suggest a bullish setup, driven largely by institutional activity. Ethereum ETFs have witnessed substantial inflows this month, totaling $1.3 billion, a stark contrast to previous outflows. A significant contributor is Grayscale, which has locked an additional 857k ETH – pushing the total staked value to 36.17 million. Furthermore, the validator entry queue has surged, with 1.3 million ETH slated for staking in the coming weeks. This aggressive institutional stacking is rapidly tightening Ethereum's liquid supply, reinforcing the $4.5k support and creating a potential supply shock that could propel ETH towards new highs in Q4.
