Ethereum experienced consistent outflows from exchanges as it neared the $4.2k support level. A move beyond $4.7k would suggest significant buyer dominance and an intent to pursue new all-time highs. AMBCrypto has suggested that the $6k mark for ETH is closer than it appears. Institutional demand continues to be strong, supporting a confident positive outlook for Q4. Joao Wedson emphasized an important point that many traders might overlook. Wedson highlighted the relationship between the Russell 2000 index and the price fluctuations of Ethereum. Typically, when the small-cap U.S. stock market index rises, Ethereum tends to follow suit.
The analyst observed that this fascinating correlation illuminated market risk cycles and investors’ willingness to take on risk. Anticipations of interest rate reductions are poised to alleviate borrowing costs for smaller firms, shedding light on the recent surge in their share values. This also weakens the dollar. Interestingly, another analyst pointed out the rise in the U.S. Dollar Index after the government shutdown. The reason behind this rise in dollar strength is that uncertainty has led investors to hold onto their cash, waiting to see how future developments unfold. The core idea is encapsulated in the classic saying: “When uncertain, take a step back.” In 2025, the U.S. Dollar Index has experienced a significant downward trend, coinciding with an acceleration in the growth of the global money supply, which has been on the rise in recent years.
The dollar’s decline can be linked to these broader changes in the economy. The perspective for crypto investors remains optimistic. Considering the present advantageous circumstances, it may be a suitable time to enhance investment in risk assets such as stocks, cryptocurrencies, gold, and silver, aligned with personal risk tolerance and return goals. For Ethereum investors, the on-chain strength appeared as a favorable sign. Analyst noted that Ethereum’s on-chain activity has entered a new phase since mid-July.
The internal contract calls, acting as a representation of complex network interactions, have increased from a baseline of 7 million to a new, stable level surpassing 9.5 million. This happened due to the alignment of regulatory approval, corporate acceptance, and the release of institutional investments. When examining the macroeconomic indicators, this establishes a strong bullish foundation that is ready to drive Ethereum prices higher.