Fidelity's Ethereum Purchase: Renewed Institutional Interest

Fidelity's Ethereum Purchase Signals Renewed Institutional Interest Despite ETF Outflows

16 October 2025 at 16: 19

Reading time: 2 minutes

Ethereum (ETH) is in the news again, as evidenced by the recent purchase of approximately 36.460 ETH worth around $154,6 million by customers of FidelityThis signals renewed institutional interest, even though spot ETH ETFs faced significant losses due to high outflows.

Before stabilizing around $4.100, the second-largest cryptocurrency briefly dipped below $4.000 this week. However, analysts believe this pullback places ETH in a crucial "buy zone," potentially signaling a surge toward new all-time highs.

Fidelity and the Rise of Traditional Finance

Fidelity's purchase highlights a growing trend of traditional financial institutions seeking increased exposure to Ethereum's smart contracts, staking yields, and tokenization potential. This contrasts with recent ETF flow data, which reported approximately $428 million in outflows in a single day, with $310 million coming out of the fund. BlackRockWhile these outflows put short-term pressure on prices, primary market creations like Fidelity's purchases can tighten available inventory and stabilize spot liquidity.

Macroeconomic nervousness and news of tariffs led to a sharp sell-off, causing ETH to drop 6,5% on October 14th and forcing $145 million in liquidations in 24 hours, according to derivatives data trackers. These forced liquidations pushed the price through the $4.000 level. However, technical analysts point out that ETH is now retesting the previous resistance as support and is still forming a bullish flag structure on higher timeframes. Popular trader Michael van de Poppe argues that ETH likely only needs a higher low to regain momentum, aiming initially at $5.000 and then $6.250, depending on buyer control.

Price Expectations and Support Levels for Ethereum

In the short term, bulls want to see Ethereum's price recover above $4.000–$4.211, followed by a decisive break above the psychological $5.000 mark. This would pave the way to the $6.250 target, as many chartists predict based on methods like Murray Math and measured-movement projections. On the downside, traders are eyeing $3.626 as intermediate support; a daily close below $3.425 would pressure the bullish structure and point to deeper consolidation. Despite the main outflows, Fidelity's inflows highlight the continued institutional interest in Ethereum's role within DeFi, NFTs, and the tokenization of real assets, as well as the structural support provided by staking yields.

If ETF outflows slow and spot demand increases, ETH's recent dip could act as a buying opportunity ahead of new cycle highs.

Frequently Asked Questions

What impact will Fidelity's purchase have on the Ethereum market?
Fidelity's purchase indicates strong interest from institutional investors, despite short-term pressure from ETF outflows. This could be a positive sign for ETH's future price development.

What are the crucial price levels that traders should pay attention to?
Traders are keeping an eye on the $4.000-$4.211 level for a positive trend, while the support at $3.626 and the critical threshold at $3.425 are also important for the overall bullish structure.

How does Ethereum compare to the broader crypto market?
Ethereum continues to play a central role in the crypto market, particularly thanks to its applications in DeFi and tokenization. The recent influx of institutional capital strengthens this position and offers potential for future growth.

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