Ethereum Update: Despite $169M Loss, Staking Boom and Dencun Enhancements Fuel Optimism for $8K

Last week, Ethereum (ETH) saw $169 million withdrawn from exchange wallets, as highlighted in a

, but traders continue to show optimism for ETH, with leveraged ETPs maintaining high interest, according to a . This outflow occurred during a broader market shift, with (BTC) attracting $921 million in new funds, fueled by hopes for possible Federal Reserve rate reductions, as reported by . Even with these withdrawals, Ethereum’s core strengths—like its deflationary token model, increasing institutional staking, and upcoming network enhancements—continue to inspire investor trust, based on a .

The differing movement of funds points to a shift within the crypto sector. On October 23, U.S. spot Bitcoin ETFs brought in $20.33 million, led by BlackRock’s IBIT, while Ethereum ETFs saw $127.51 million withdrawn, as a

reported. This pattern became more pronounced as rising tensions between the U.S. and China increased market uncertainty, prompting investors to favor assets like Bitcoin, according to a . Meanwhile, Ethereum’s price remained stable at $3,970, with blockchain data indicating a possible bounce after forming a “triple bottom” setup.

Institutional involvement highlights Ethereum’s durability. Staking continues to be a major factor, with over $27.5 million in private investments raised for Ethereum-based ventures such as Remittix (RTX), a PayFi project connecting blockchain with traditional finance, as noted by Cryptopolitan. Remittix’s beta wallet launch and CertiK’s security checks have increased investor confidence, and a 15% USDT referral incentive encourages wider use. Analysts believe these practical projects strengthen Ethereum’s position as a backbone for global payments, supporting bullish forecasts of $8,000 by 2025.

Wider economic conditions also influenced market mood. The U.S. government shutdown postponed key economic releases, leaving the September CPI as the main reference for Fed decisions; the 3% annual inflation rate, which was lower than expected, triggered a risk-on rally, with Bitcoin jumping over 5% and Ethereum rising 4%, according to Coinotag. Investors now estimate a 98.4% probability of a 25-basis-point rate cut at the October FOMC meeting, based on

.

Despite recent price swings, Ethereum’s technical indicators remain strong. Currently trading at $3,846, ETH’s total market value is $464 billion, with daily trading volume reaching $49.89 billion, as previously reported. Developers are moving forward with the Dencun upgrade, which aims to boost scalability, while DeFi activity is on the rise. “Ethereum’s deflationary features and growing range of applications make it a promising long-term investment,” one analyst commented, echoing research teams that predict an $8,000 price by 2025.

Attention is now on the Federal Reserve’s October 29-30 meeting and the possible approval of spot Ethereum ETFs, which could bring in new investments, according to TradingView. For now, traders are taking a cautious approach: while Ethereum is seeing outflows, leveraged products remain in demand, reflecting expectations for a short-term price recovery.

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