Increased institutional adoption of stablecoins, exemplified by Visa, and Binance's offerings for Traditional Finance (TradFi) suggest growing real-world demand. Regulatory easing regarding DePIN by the SEC and a legislative initiative in Wisconsin heighten expectations for ecosystem growth. Recent price recovery is also improving market sentiment. Consequently, we will monitor the market with a neutral-to-bullish bias.

Fundamental Analysis * Visa Launches Stablecoin Pilot for Cross-Border Payments Using USDC and EURC Visa's initiation of a pilot program for cross-border payments using stablecoins expands the availability of these digital assets for institutional investors and stimulates real-world demand. This suggests an expansion of stablecoin use cases, potentially benefiting the Ethereum (ETH) ecosystem. Notably, the utilization of EURC could accelerate stablecoin adoption in the European market, strengthening ETH's role as a payment method. * Republic Tokenizes Animoca Brands Shares on Solana Republic's tokenization of shares in the Web3 investment firm Animoca Brands on Solana signifies further progress in the tokenization of Real-World Assets (RWA). This initiative broadens investment opportunities in stocks that were previously accessible only to a limited group, further democratizing investment in the Web3 space. This trend indicates the potential for ETH to serve as the foundational smart contract platform for RWA tokenization, potentially driving new asset inflows into the ETH ecosystem. * Bitcoin is Being "Domesticated": An Opinion The view that Bitcoin is becoming "domesticated" suggests its ongoing integration into the traditional financial system. While this facilitates easier entry for institutional investors, it may also lead to a dilution of Bitcoin's core principle of decentralization. However, for platform-based cryptocurrencies like ETH, this implies deepening integration with traditional finance, potentially enhancing ETH's credibility and fostering the creation of new use cases. * SEC Rules DePIN Tokens Outside Its Purview The SEC's determination that certain DePIN tokens fall outside its jurisdiction provides regulatory clarity for specific sectors, offering welcome news for project developers and investors. DePIN, focused on building decentralized networks for physical infrastructure, may see accelerated growth for related projects due to this regulatory clarification. As ETH is often utilized as the foundation for DePIN projects, this development could contribute to the overall revitalization of the ETH ecosystem. * IoTeX Launches Decentralized AI Platform "AI Foundry" IoTeX's launch of AI Foundry accelerates the trend towards decentralization within the artificial intelligence sector. Training AI models requires vast computational resources, and leveraging decentralized infrastructure can help reduce costs and improve accessibility for AI development. ETH possesses the capability to support AI-related projects as a platform for decentralized applications (dApps), and initiatives like AI Foundry may attract new developers and projects to the ETH ecosystem. * SEC Temporarily Halts Trading for Crypto Custodian QMMM The SEC's temporary halt of trading for crypto custodian firm QMMM signals intensified scrutiny from regulators. While this presents a potential risk factor for market participants, it also serves as a warning against fraudulent activities and market manipulation, contributing to long-term market integrity. This action could impact companies providing ETH custody services, heightening the need for enhanced compliance measures. * Wisconsin Introduces Bill to Exclude Crypto Businesses from Money Transmission Licenses Wisconsin's introduction of a bill to exclude cryptocurrency businesses from money transmission licensing requirements highlights regional regulatory divergence in the US concerning digital assets. If passed, this legislation would lower the barrier to entry for crypto-related businesses within the state, potentially simplifying mining, staking, and trading activities. This could lead to an increase in participants engaging with the ETH network and foster the expansion of ETH-related services. * Binance Launches "Crypto-as-a-Service" for TradFi Institutions Binance's introduction of its "Crypto-as-a-Service" solution for Traditional Finance (TradFi) institutions signifies a deeper integration of crypto into the established financial system. This allows financial institutions to offer cryptocurrency services to their clients by leveraging Binance's liquidity and custody infrastructure without needing to build their own. This trend could potentially boost ETH liquidity and encourage the development of ETH-based financial products. * Bitcoin Recovers to $114,000, Raising Hopes for "Uptober" Bitcoin's recovery to $114,000, coupled with rising expectations for an "Uptober" rally, indicates an improvement in market sentiment. This resurgence appears supported by easing concerns over a potential US government shutdown and anticipation of greater regulatory clarity. ETH may also benefit from this positive market sentiment, potentially driving a price increase in October. * Ether Recoups $4,000: Three Reasons Suggesting an October Rally Ether reclaiming the $4,000 mark heightens expectations for an October rally, pointing to the underlying strength of ETH's fundamentals. A decrease in ETH supply from exchanges, alongside increased trading volume on Decentralized Exchanges (DEXs), suggests a potential for demand to outstrip supply, acting as a catalyst for price appreciation. Historical data also indicates a tendency for price increases in October, further supporting anticipation of continued upward momentum for ETH. Overall Summary The increasing adoption of crypto assets by institutional investors, exemplified by Visa's stablecoin initiative and Binance's TradFi services, shows signs of expanding real-world demand. Regulatory developments, such as the SEC's clarification on DePIN tokens and Wisconsin's proposed legislation, suggest clearer regulations in certain areas and lowered barriers to entry, potentially benefiting the ETH ecosystem. Concurrently, intensified regulatory scrutiny, as seen with the SEC's action against QMMM, indicates that the market is navigating both positive catalysts and risk factors. The recent price recovery observed in both Bitcoin and Ether entering October points towards an overall market sentiment improvement, potentially driving further gains for ETH.

The SEC's QMMM trading halt signals heightened regulatory scrutiny and introduces an element of uncertainty. The narrative surrounding the "domestication of Bitcoin" carries the risk of diluting decentralization ideals, potentially impacting the long-term value of ETH. The critical support level is the recent low of $3,846; breaking below this threshold heightens downside risk. Close monitoring of regulatory developments and macroeconomic shifts remains necessary.

For the next 24-48 hours, we anticipate consolidation or a mild upside, underpinned by strong fundamentals. In the medium-term weekly scenario, a sustained positive news flow could trigger a breakout above the $4,226 resistance level, potentially targeting further higher highs. Key catalysts to monitor include fresh announcements from institutional investors and advancements in DePIN and AI-related projects.

Overall, the ETH market exhibits strong fundamentals, supported by increasing institutional adoption and burgeoning signs of ecosystem development. Technically, while the market remains neutral, recent price resilience and the reclaiming of the $4,000 level are positive signals. Regulatory risks persist, but clarification regarding sectors like DePIN and RWA is expected to support long-term growth. Currently, we maintain a neutral to slightly bullish bias. As an investment recommendation, consider buying on dips in the $3,800-$4,000 range, with a stop-loss set below $3,800. Short-term profit-taking targets are set above $4,226, with medium-term targets aiming for the $4,500-$5,000 range. Breaking the $4,226 resistance this week will be key; clearing this level may signal a transition into a further uptrend. For risk management, closely monitoring SEC developments and macroeconomic indicators, and executing strategies based on rational analysis, are key to success.