Ethereum (ETH) enters October with strong gathering hopes as optimism about “up-to-bar” fuel fuels.
But under the surface, some signals on the signal suggest that Ethereum investors may need to step on carefully.
Ethereum faces hidden dangers
Positive sentiment comes after Altcoin, the second largest in the market capitalization metric, recorded a significant Ethereum ETF inflow in the third quarter, enjoying wider positive sentiment, especially from institutions, across the crypto market.
However, on-chain data draws a different picture, showing the looming risks as investors gradually show attention.
Staking growth is stagnant
One of Ethereum’s biggest strengths since the merge was the steady rise in piling ETH. However, that trend is now stagnant.
According to encrypted data, the effective ETH balance of Ethereum deposit contracts has been flattened from around July 20th, stabilizing ETH of around 36 million people.
The total amount of the ETH was staked. Source: Cryptoquant
This stagnation has shown greater attention among investors regarding the immersion of ETH in the defi protocol. Over the next few months, staking growth provided a structural tailwind for Ethereum, stacking supply and increasing network security.
The chart shows that Ethereum price gatherings coincided with increased staking, just as the lull coincided with price stagnation.
This pause in the trajectory suggests that investors are potentially and more carefully weighing risks due to market uncertainty, yield reduction, or capital turnover to Bitcoin.
The momentum to purchase ETFs is fading
Another risk comes from Ethereum ETF (exchange sales fund). After first attracting influx earlier this year, accumulation has slowed dramatically.
Data from StrategyEthReserve.xyz shows that Eth ETF holdings have not risen since early August as they reached a vulnerable balance between inflow and outflow.
Influx of Ethereum ETFs. Source: StrategyEthReserve.xyz
This lack of online purchases undermines a significant bullish story. The ETF was expected to provide a stable demand base for Ethereum, similar to how the Bitcoin ETF absorbed its institutional benefits.
Instead, the flow of ETH ETFs reflects hesitation, suggesting that they are only consistent with sales pressure while purchase demand exists. Ethereum prices may depend on ETFs returning to net accumulation.
Stablecoin fluidity is running out
Perhaps the most pressing concern is liquidity. On-chain data shows that the average Stablecoin Netflows to centralized exchange (CEX) have been negative since September 22nd.
Stablecoin flows to CEXS. Source: Cryptoquant
This trend, highlighted by on-chain analyst Axel Adler, shows that there is less capital available for spot buying activities.
“The average Stablecoin Netflow to CEX has been negative and has declined since September 22. Spot liquidity is declining, but BTC prices continue to rise. This is a signal of concern,” Adler wrote.
He added that ETFS has brought in $947 million inflows over the past few days, but that support alone may not be enough to maintain a fully up-to-date rally without stronger spot liquidity.
Balancing optimism and risk
Nevertheless, Ethereum’s foundations remain strong and could still be upward in October if broader risk appetite continues to improve.
The ETF inflow and bullish seasonal trends into Bitcoin provide a supportive background. However, these risks (stuck staking, stagnant ETF demand, and reduced spot liquidity) provide important context for overly optimistic forecasts.
Understanding these undercurrents can help minimize losses if the market moves against expectations. Therefore, investors should pay attention to their own research as October could bring both opportunities and disappointment.
Is Post Ethereum at risk? Important data reveals the growing attention of investors who first appeared in Beincrypto.
