Ethereum reached a two-week high of $4,500 on Thursday, showcasing a robust quarterly performance despite significant volatility in traditional markets.
The world’s second-largest cryptocurrency by market capitalization has gained 1.6% in the last 24 hours. According to data from CoinGlass, Ethereum closed the third quarter—often considered a bearish period—with a 74% return and is up 34% for the year.
While U.S. equities and gold have faced headwinds, the broader cryptocurrency market is experiencing a surge in buying pressure. This trend, occurring amid the U.S. government shutdown, has pushed the top two digital assets up by nearly 6% and 8%, respectively.
This momentum is supported by a notable shift in trader sentiment. On the prediction market Myriad, 72% of users now anticipate Ethereum will climb to $5,000 rather than fall to $3,500, an increase from 66% on Thursday.
Thahbib Rahman, a research analyst at Block Scholes, explained that bearish positioning in the options market during September has reversed at the start of October. “Options expiring in the next couple of weeks now express a higher relative demand for calls than puts,” he noted, but cautioned that this optimism may be short-lived, as “longer-term put options still carry a premium.”
Czhang Lin, head of LBank Labs, shared a positive near-term outlook, stating, “Ethereum looks solid heading into the fourth quarter.” He highlighted that October is historically a strong month for crypto and that “Ethereum has held up better than many assets even with equities under pressure.” While Lin expects some short-term choppiness, he believes the overall momentum will remain positive.
Analysts are also monitoring whether Digital Asset Treasuries (DATs) will resume accumulating Ethereum, a key source of institutional demand that has recently slowed. Ryan Lee, chief analyst at Bitget, views this as a temporary interruption. “ETH DATs have paused with equities under pressure, but I see it as a pause, not a pullback,” he said.
A return of these institutional buyers could significantly boost the market. Lin noted that if these entities resume their purchases, it would coincide with an increase in total staked Ethereum. “This confluence could push the Ethereum prices higher faster,” he concluded, with Lee adding that such a development would provide “real conviction to a fourth-quarter breakout scenario.”
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