Ethereum Updates Today: Ethereum ETFs Surge While Major Investors Anticipate a Downturn: The Cryptocurrency Market's Risky Comeback

Ethereum (ETH) is beginning to show signs of a rebound as investor sentiment improves in response to evolving market conditions. Following a turbulent week, U.S. spot

exchange-traded funds (ETFs) saw net inflows of $141.6 million on October 21, with Fidelity's FETH and BlackRock's ETHA leading the way. This shift ends a streak of three days with net outflows and indicates that institutional interest in the second-largest cryptocurrency by market value is regaining stability, . At the same time, Ethereum’s Fusaka upgrade, which is scheduled to go live on the mainnet on December 3, 2025, aims to improve network performance by introducing a gas cap mechanism. This development is fueling further among long-term investors, .

The recent ETF inflows are happening against a backdrop of broader market uncertainty, largely due to

(BTC) whales placing substantial short bets. One notable whale, known as "BitcoinOG(1011)," has opened $140 million in short positions on Hyperliquid, down from $227 million earlier in the week. This trader, who accurately anticipated the crypto market drop on October 10-11, has moved 5,352 BTC—valued at $600 million—to exchanges such as Kraken and Binance since mid-October. Experts point out that this scale of short selling, while negative for Bitcoin, could also put downward pressure on Ethereum as leveraged positions across the crypto sector face liquidation, .

Adding to the market’s turbulence, another major player referred to as the "Trump Insider Whale" placed a $1.1 billion leveraged short across both Bitcoin and Ethereum, perfectly timed just before former President Donald Trump’s October 10 announcement of a 100% tariff on Chinese goods. This position quickly generated $150 million in profit after the market crash, sparking concerns about potential access to privileged information. Blockchain analysts caution that if retail investors begin to mimic these precisely timed strategies, it could intensify selling pressure and create a self-reinforcing cycle, according to

.

Despite these challenges, Ethereum’s technical signals point to a possible recovery. The cryptocurrency is trading close to $3,857, with significant support at $3,800 and resistance around $4,500. Open interest in Ethereum derivatives has increased by 0.6% to $43.8 billion, reflecting cautious optimism as traders rebuild positions after the recent downturn, crypto.news reports. Nevertheless, the outlook remains uncertain, with market participants closely monitoring the Federal Reserve’s rate decision on October 28–29. A dovish policy could improve liquidity for riskier assets like cryptocurrencies, while a more hawkish approach might renew economic headwinds.