The Ethereum network has seen a dramatic 400% increase in stablecoin transfers over the past month, pushing the total transfer volume to $581 billion across more than 12.5 million transactions. According to data from Token Terminal, this surge has boosted the total market cap of stablecoins on Ethereum to over $163 billion.

This spike in activity comes as Ethereum’s price experienced a minor correction, falling about 4.5% over the last week and briefly testing support near $3,738. For some large-scale investors, this price drop appears to have been a clear buying opportunity.

Major Investors Seize Buying Opportunity

On-chain data reveals significant accumulation by major token holders, often called “whales.” Arkham Intelligence records showed a newly created wallet, identified as 0x86Ed, spending $32 million to acquire 8,491 ETH in just three hours. In another instance, a high-profile account monitored by LookOnChain reportedly moved 284,000 USDC to the Hyperliquid platform, seemingly to maintain long exposure to ETH following recent market liquidations.

The broader trend supports these individual actions, with October’s stablecoin transaction volume on Ethereum surpassing $1.91 trillion. This marks only the second time on record it has reached such a level, indicating that substantial capital flows continue to move through the network.

Institutional Interest Continues to Grow

Data from analytics firm CryptoQuant points to a steady rise in institutional interest. A notable indicator is the climbing open interest for ETH futures on the Chicago Mercantile Exchange (CME), which suggests larger players are establishing positions in anticipation of a potential price move.

Market analysts are also taking note. Fundstrat’s Tom Lee suggested that ETH could head toward $5,000 if its ratio against Bitcoin clears a key resistance level. Matt Sheffield, CIO at Sharplink Gaming, highlighted the enormous potential for stablecoin growth, noting that legacy payment systems like SWIFT process around $150 trillion annually, leaving significant room for blockchain-based alternatives to expand.

Key Technical Levels to Watch

From a technical standpoint, Ethereum is trading near critical price levels. Currently priced around $3,887, ETH sits just above a significant Fibonacci retracement support at $3,781. Further support lies near $3,640, with a formal invalidation of the current bullish structure set at $3,443.

Some technicians have also pointed to a potential triple bottom trading pattern forming around the $3,600 mark. This, combined with signs of a Wyckoff re-accumulation pattern, could suggest a setup for higher price targets, with one key extension level identified at $5,125.

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