Ethereum News Update: Ethereum’s $4,000 Recovery Remains Uncertain Amid Geopolitical Hopes and Ongoing Market Volatility

On October 26, Ethereum briefly surged past the $4,000 mark, buoyed by positive sentiment linked to U.S. President Donald Trump’s visit to Asia and upcoming trade discussions with China’s Xi Jinping. This uptick occurred as bearish traders accumulated $650 million in leveraged bets near $4,100, highlighting persistent uncertainty about Ethereum’s short-term outlook, according to

. The token’s rebound mirrored gains across the broader crypto market, with leading assets such as and notching consecutive advances over the weekend, driven by geopolitical developments during Trump’s Asian tour, as reported by .

According to Coinpedia, the breakthrough in U.S.-China trade relations was announced during Trump’s stop in Malaysia, where he facilitated a peace agreement between Cambodia and Thailand. This development reduced global supply chain concerns and pushed the total crypto market capitalization to $3.83 trillion. Despite this, Ethereum’s rally remained fragile, with institutional players like Tom Lee’s Bitmine continuing to aggressively accumulate. Artemis data revealed these firms now control 3.2 million ETH—equivalent to 0.40% of all ETH—outpacing the 0.36% of Bitcoin held by corporations, as noted in the Yahoo analysis. Experts attribute this trend to Ethereum’s yield-generating capabilities and its shift to an energy-saving Proof-of-Stake model, which has drawn in institutions focused on sustainability, the analysis added.

Elsewhere, a major crypto investor known as "0xc2a" took advantage of October’s market swings, earning $17 million in profits from long positions in Bitcoin and

. This trader’s achievement, marked by an unbroken winning streak since the mid-October market dip, was covered in . Nevertheless, Ethereum’s recent performance has fallen short of typical “Uptober” expectations, as ongoing geopolitical tensions and waves of liquidations have weighed on investor sentiment.

Bitcoin’s climb to $113,800—a 2% increase over the weekend—further underscored the diverging paths of major digital assets. While Bitcoin enjoyed a 10-day surge with $400 million in new TVL inflows, gold’s 6% drop from its October 18 high has raised doubts about its status as a safe haven, according to

. The negative correlation between Bitcoin and gold, which reached -0.84, points to a shift in investor focus toward yield-producing digital assets amid clearer regulations and ETF launches, the outlook noted.

Ethereum’s hold above $4,000 remains uncertain, with short-term traders watching closely as Trump prepares to meet Xi on October 30. While a formal trade agreement could ease tariffs and calm markets, analysts warn that larger macroeconomic events—such as the FOMC meeting—will ultimately shape ETH’s direction. For now, Ethereum’s price movement reflects a market balancing between hopes for geopolitical progress and persistent risk aversion.