Ethereum is showing signs of potentially significant upward movement, backed by both a robust technical pattern and institutional support from BlackRock’s recent investment.
Ethereum’s price action has recently captivated traders and investors alike as it appears to be completing a Wyckoff re-accumulation pattern, a scenario generally indicative of recovery in the market. Currently trading around $3,870, a modest daily increase is apparent. Analysts are optimistic, projecting targets as high as $8,400 or even $10,000 in light of favorable market conditions.
Understanding the Wyckoff Re-Accumulation Pattern
The Wyckoff method is a well-established technical analysis framework that outlines phases of market cycles, particularly during consolidations and recoveries. Ethereum has been following this model since early 2024, with the re-accumulation pattern unfolding in distinct phases. Beginning in March 2024, the initial phase, known as Preliminary Support (PSY), set the stage for an Automatic Rally (AR), wherein price levels surged noticeably before entering a consolidation phase.
As the market transitioned into Phase B, ETH experienced sideways movement, reflecting the absorption of selling pressure. This period is crucial as it consolidates gains while creating a strong foundation for possible bullish action.
If Richard Wyckoff were alive, he would buy $ETH here. pic.twitter.com/0ZWXcgJZ9C
— Poseidon (@CryptoPoseidonn) October 22, 2025
Moving into Phase C, the Spring and Test patterns solidify the notion that sellers are exhausted, nearing the conclusion of the accumulation phase. Phase D presented a clear Sign of Strength (SOS), leading to the current Phase E, where Ethereum is expected to break out. This is seen as a prime buying opportunity, with bullish sentiments suggesting a surge towards the projected price levels of $8,400 or beyond, particularly as Ethereum prepares for significant upgrades to its infrastructure.
BlackRock’s Major $110 Million Purchase: A Game Changer
Adding fuel to the bullish narrative is BlackRock’s recent acquisition of 28,600 ETH through its spot ETF, totaling a whopping $110 million. This significant institutional buy strongly signals confidence in Ethereum’s long-term future, suggesting a shift in market sentiment that could resonate with retail investors.
BlackRock’s involvement not only enhances Ethereum’s profile in the financial community but also signals an alignment with the current bullish market structure. The recent overtures from institutional players like BlackRock highlight the increasing acceptance and support for cryptocurrencies in the broader financial ecosystem.
Moreover, this influx comes at a time when Ethereum has witnessed substantial outflows from centralized exchanges. Recent data from CoinGlass indicates a net withdrawal of $5 million on October 23, further underscoring the trend of investors opting to hold or stake their ETH, thereby decreasing its availability in the market.
Institutional Demand Coupled with Supply Constraints
The dual forces of rising institutional demand and shrinking supply create a powerful environment for Ethereum’s price ascension. With significant purchases from major entities like BlackRock and continuing withdrawals from exchanges, a trend towards long-term holding is evident. Such a shift fundamentally narrows the available supply of Ethereum, suggesting that any surge in demand could drive substantial price increases.
As liquidity drains from centralized platforms, the backing from institutional giants bolsters the positive outlook. Buying momentum intensified by reduced supply creates a robust framework for price movements, enhancing the bullish case for Ethereum’s imminent future.
Many analysts now see a burgeoning opportunity in Ethereum’s price trajectory, accentuated by the confluence of technical patterns and institutional support, and expect continuing bullish momentum, potentially propelling the token to unprecedented levels.
