Ethereum (ETH) is trading around $4,192 after briefly touching $4,220, signaling early signs of recovery following last week’s sharp sell-off. Despite lingering market volatility, analysts at Fundstrat Global Advisors remain bullish, projecting a strong rebound for the world’s second-largest cryptocurrency.
Fundstrat eyes strong recovery ahead
Tom Lee, co-founder of Fundstrat Global Advisors, said he expects Ethereum to “stage a major rally” once the current corrective phase concludes.
His colleague Mark Newton, Managing Director at Fundstrat, echoed the sentiment, suggesting that ETH is nearing a short-term bottom near $4,200 before a potential surge toward $5,500.
Crypto savant @MarkNewtonCMT at it again:
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) October 9, 2025
"I do not make much of Crypto weakness in recent days, and expect $ETHUSD likely bottoms out over the next 1-2 days before heading back higher and rallies to $5500.
- Following a recent strong technical rally from 9/25 into 10/7 in… pic.twitter.com/LCQDtGpDXs
Newton called the recent pullback a “minor third-wave correction,” adding that Ethereum could resume its uptrend within days as technical signals reset and broader sentiment improves.
Institutional accumulation drives confidence
Institutional participation in the Ethereum network remains robust. On-chain data from Arkham Intelligence shows significant ETH deposits into the Beacon Chain by Grayscale, reportedly linked to its newly launched staking service. Fundstrat’s affiliate firm Bitmine has also increased its ETH exposure, reflecting growing conviction among institutional players.
This alignment of technical support near $4,100 and institutional buying pressure could reinforce Ethereum’s base and accelerate recovery. Analysts view such activity as a confirmation of long-term confidence in Ethereum’s network strength and cycle maturity.
Market dynamics and technical picture
After slipping as low as $3,510 during last week’s market-wide bloodbath, triggered by renewed macroeconomic uncertainty and tariff headlines, ETH bounced from its 200-day exponential moving average (EMA), a crucial long-term support. The Relative Strength Index (RSI) has climbed from oversold territory, now hovering near 50, suggesting improving momentum.
ETH/USD has also reclaimed the 100-hour moving average, with short-term resistance seen around $4,250, a level that coincides with a key Fibonacci zone. A decisive break above this threshold could open the door toward $4,450–$4,500, while failing to hold the $4,100 zone might invite short-term retracement toward the $3,950 level.
Market traders note that a sustained move above $4,220 with strong volume confirmation would signal that bulls are regaining control.
“It’s a trader’s market right now,” said one analyst. “ETH’s price structure shows the potential for a sharp breakout once liquidity pockets clear.”
Macro tailwinds and investor sentiment
Broader market outlooks remain cautiously optimistic. According to CoinW’s Chief Strategy Officer Nassar Achkal, expectations for monetary easing in the U.S. and stabilizing inflation forecasts could serve as tailwinds for risk assets.
“As liquidity conditions improve, Ethereum is positioned to outperform traditional markets, especially given its role as the leading smart contract platform,” Achkal noted.
On-chain metrics show rising staking participation alongside declining exchange balances, signals historically associated with reduced sell pressure. While short-term volatility may persist, analysts broadly agree that the long-term trajectory remains constructive.
Ethereum technical snapshot (as of writing)
- Current Price: $4,192
- 24h Range: $3,793 – $4,220
- Major Resistance: $4,250, then $4,450
- Key Support: $4,080, then $3,950
- Targets according to Fundstrat: $5,500 (medium-term)
While Ethereum continues to test critical resistance levels around $4,200, both institutional positioning and improving technical structure highlight the potential for a strong rebound. If momentum holds, analysts see the current range not as exhaustion, but as accumulation before Ethereum’s next leg higher.
Roman Zaika
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