Ethereum continues to trade within a tight range following its recent pullback from the $4,760 high. The asset now hovers near $4,000 as traders assess the next directional move. Despite short-term weakness, growing institutional activity suggests confidence in Ethereum’s long-term strength. The market shows signs of balance between accumulation and caution, hinting at a potential surge in volatility. Price Holds Key Fibonacci Support Zone Ethereum’s four-hour chart reflects a consolidation phase after a sharp correction. The price currently trades around $4,004, close to the 23.6% Fibonacci level at $3,910, which acts as near-term support. A breakdown below this point could push prices toward $3,650, the next significant swing low. ETH Price Dynamics (Source: TradingView) On the upside, resistance emerges at the 38.2% Fibonacci retracement of $4,222, overlapping with the 50-day and 100-day exponential moving averages. This confluence creates a critical zone for traders watching a breakout. A close above $4,220 may trigger momentum toward $4,335 or even $4,520 if buyers regain strength. Open Interest Surge Suggests Major Price Swing Ahead Ethereum’s futures open interest has expanded rapidly throughout 2025, rising from $10 billion in January to nearly $46 billion in mid-October. This growth reflects robust engagement among leveraged traders and institutions. Source: Coinglass Historically, such spikes in open interest often precede volatile movements as traders position for large swings. Moreover, the consistent increase in futures participation reinforces Ethereum’s dominance in the derivatives market, underscoring its maturing appeal to institutional investors. Related: Bitcoin (BTC) Price Prediction: Bulls Defend $111K as Analysts See Catch-Up With Gold Spot Flows Point to Renewed Accumulation On-chain data reveals fluctuating exchange flows as investors reposition for the next move. From February through September, outflows dominated as holders withdrew ETH from exchanges, indicating long-term accumulation. Source: Coinglass However, recent net inflows of about $3 million show renewed trading activity. Sustained inflows above the $3,900 level could build the foundation for another rally toward $5,000, a psychological resistance zone. BitMine Expands Ethereum Treasury Institutional demand received another boost when BitMine Immersion Technologies purchased over 104,000 ETH, valued at roughly $417 million. This addition brought its total holdings to more than 3 million ETH, worth $12.2 billion. It looks like Bitmine(@BitMNR) just bought another 104,336 $ETH($417M).Over the past 7 hours, 3 new wallets received 104,336 $ETH($417M) from #Kraken and #BitGo.Despite the crypto market crash, Tom Lee still predicts $ETH will hit $10K by year-end.https://t.co/KewyZ4cAeP… pic.twitter.com/Vn5b9ijP2Z — Lookonchain (@lookonchain) October 16, 2025 The firm, led by Tom Lee, aims to acquire 5% of Ethereum’s total supply. This move demonstrates deep conviction in Ethereum’s long-term potential and strengthens its position as the largest corporate holder of ETH globally. Technical Outlook for Ethereum Price Key levels remain clearly defined as Ethereum consolidates below the $4,200 resistance zone heading into late October. Upside levels: $4,130 (50-EMA), $4,222 (38.2% Fib), and $4,335 (0.618 Fib) as immediate hurdles. A confirmed breakout above $4,335 could open the path toward $4,520 and $4,760, the recent swing high. Downside levels: $3,910 (23.6% Fib support) remains the first key defense, followed by $3,650 (recent swing low) and $3,400 (200-day EMA). Resistance ceiling: The $4,256 zone, near the 200-EMA, stands as the key level to flip for medium-term bullish momentum. Technically, Ethereum is compressing inside a tightening consolidation channel following its correction from $4,760. The pattern signals equilibrium between buyers and sellers, with volatility likely to expand once price breaks outside this range. Will Ethereum Break Higher? Ethereum’s short-term trajectory depends on whether buyers can protect the $3,910 support zone long enough to reclaim the $4,220–$4,335 cluster. Sustained buying pressure above this range could shift momentum toward a retest of $4,520 and potentially $4,760. However, failure to defend $3,910 would expose Ethereum to deeper retracements toward $3,650 or even $3,400, maintaining the current bearish bias. For now, Ethereum trades in a pivotal zone where futures leverage, institutional flows, and treasury accumulation may dictate the next major swing. Related: Shiba Inu Price Prediction: SHIB’s Recovery Stalls As Momentum Weakens Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.