Company Fidelity Buys Ethereum as Spot ETF Redemptions Pressure Price — Pullback Marks a Key Buy Zone

Company Fidelity recently purchased approximately 36,460 ETH (about $154.6 million), highlighting renewed institutional interest in Ethereum even as spot ETH ETFs recorded significant redemptions. The buy comes amid a day when spot ETH products experienced roughly $428 million in outflows, led by Company BlackRock’s fund with about $310 million in redemptions. This contrast between primary-market buying and ETF outflows illustrates how institutional tactics can tighten available supply and support spot liquidity despite headline selling.

Price action showed ETH briefly dipping below $4,000 before stabilizing around $4,100. The pullback produced a sharp intraday move — ETH fell about 6.5% on Oct. 14 — and triggered roughly $145 million in liquidations within 24 hours, per derivatives trackers. Those liquidations pushed the market through the $4,000 handle, but technical analysts emphasize that the token is retesting prior resistance-turned-support and continues to form a bullish flag on higher time frames.

Prominent technician Mr. Michael van de Poppe argues that ETH likely only needs a higher low to reassert upward momentum, eyeing a recovery toward $5,000 first and then a continuation to $6,250 if buyers reclaim control. On the downside, traders are watching an interim support band around $3,626, with a decisive daily close below $3,425 threatening the bullish structure and implying deeper consolidation is possible.

From a flows perspective, the episode underscores how Company Fidelity’s direct spot purchases and other primary-market creations can counterbalance ETF-led outflows by reducing tradable supply and shoring up liquidity. Institutional interest is being driven by Ethereum’s utility across DeFi, NFTs, staking yields, and tokenization opportunities — structural narratives that remain intact despite short-term ETF redemptions.

Technically, bulls will want to see ETH regain and hold the $4,000–$4,211 range as a springboard. A sustained break and flip of the $5,000 psychological level could unlock measured-move targets that many chartists reference around $6,250, including projections using Murrey Math and measured-move techniques. Conversely, a daily close below $3,425 would likely invalidate the bullish flag and open the door to a deeper corrective phase.

Market participants should monitor ETF flow trends carefully: if redemptions abate and spot demand returns, the recent dip could present a classic buy-the-pullback setup on the path toward new cycle highs. For real-time price context and chart updates, traders can reference ETHUSD charts on TradingView, which show the ongoing attempt to form a higher-low structure on daily time frames.

Bottom line: The combination of a meaningful Company Fidelity purchase and technical retesting suggests Ethereum’s pullback may be an actionable accumulation zone for patients willing to manage downside risk around the $3,626–$3,425 levels. If institutional spot appetite continues to re-emerge and ETF outflows cool, ETH has a credible path to reclaim $5,000 and potentially test the $6,250 target highlighted by many technicians.