Key takeaways
- Ethereum ETFs lose $1.08 billion during October
- ETH buyers defend support near the $2,400 level
- Short liquidations increase ahead of $2,500 resistance test
ETH traded around $2,450 in October 21 market snapshots after briefly falling below $2,400. Meanwhile, spot Ethereum ETFs recorded another $26.13 million in net withdrawals on October 20, marking their fifth consecutive negative trading session.
The outflows came even as short sellers faced mounting liquidations, suggesting that leveraged positioning may be contributing to Ethereum's recovery without a corresponding improvement in institutional demand.
Ethereum ETF Outflows Reach $1.08 Billion in October
Institutional selling has intensified throughout October, reversing the approximately $832 million in net inflows recorded during September.
BlackRock's iShares Ethereum Trust (ETHA) lost $33.02 million on October 20, while Fidelity's FETH and Grayscale's Ethereum Mini Trust attracted $3.63 million and $3.25 million, respectively.
The withdrawals followed an earlier BlackRock-led selloff that removed $103.3 million from Ethereum ETFs on October 19, including $95.4 million from ETHA.
Institutional demand had already weakened during the preceding sessions. A separate three-day withdrawal streak saw $259.5 million leave the funds between October 14 and 16, with BlackRock accounting for approximately 86% of those withdrawals.
However, ETF outflows represent net fund redemptions rather than an equivalent decline in Ethereum's market capitalization. They also do not establish that all institutional investors are selling ETH.
ETH Short Liquidations Rise as Buyers Defend $2,400
Despite the persistent ETF withdrawals, Ethereum has repeatedly attracted buying interest near $2,400.
Recent derivatives data showed approximately $90.59 million in ETH liquidations over 24 hours, including $62.17 million in short positions. The imbalance suggests that traders betting on further declines were particularly vulnerable during the rebound.
Liquidated short positions generally require purchases to close exposure, potentially accelerating an upward move.
However, falling open interest alongside rising prices can indicate that existing shorts are closing rather than substantial new capital entering the market.
Ethereum's technical picture remains mixed. The $2,400 region has repeatedly attracted buyers, but ETH continues to face resistance around $2,444 and $2,500.
The higher level previously became an important reference during an earlier Ethereum correction, when weakening ETF demand and elevated Treasury yields pressured the cryptocurrency.
Ethereum Price Prediction: Can ETH Reclaim $2,500?
A sustained recovery above $2,500 would strengthen Ethereum's bullish outlook, potentially bringing $2,548 into focus before a broader challenge toward $2,780.
Conversely, failure to defend $2,400 could expose technical support around $2,362 and $2,324. A deeper decline would shift attention toward the reported on-chain cost-basis region near $2,311.
Ethereum's supply dynamics offer a contrasting signal. Earlier staking data showed approximately 35% of ETH committed to network validators, reducing the amount immediately available for trading.
However, the recent staking exit queue demonstrated that large withdrawals do not necessarily represent immediate selling, particularly when validators are restructuring their positions.