Ethereum is consolidating around the $3,500 mark as the broader crypto market absorbs a $100 billion downturn.
Traders are assessing whether ETH can stabilize and recover toward $4,000 or if bearish momentum will push the price lower in the coming days.
Ethereum Price Tests Key Support Zone as Market Liquidations Deepen
Ethereum (ETH) is under pressure after the broader cryptocurrency market erased more than $100 billion in capitalization within 24 hours. The world’s second-largest crypto asset fell sharply to test the $3,500 support zone, a level that traders identify as a key pivot for Ethereum’s short-term direction.
Ethereum ($ETH) faces a critical test at $3,500 as traders watch closely for support to hold. Source: @CryptoCaesarTA via X
As of November 4, 2025, ETH traded near $3,528, down 5.17% in 24 hours with a daily volume of over $51.9 billion, according to Brave New Coin data. The decline followed a cascade of market-wide liquidations exceeding $1.14 billion, triggered by risk-off sentiment after U.S. Federal Reserve Chair Jerome Powell’s cautious tone on interest rates and a series of DeFi exploits, including Balancer’s $110 million hack.
Crypto analyst @CryptoCaesarTA highlighted the importance of Ethereum’s current position: “$ETH really needs to hold this level,” he said, referencing the $3,487 support area that could determine the next major move for Ethereum.
Ethereum Faces Post-Crash Shakeout as Institutional Players Accumulate
Amid the decline, some traders suggest the pullback could be part of a larger accumulation phase rather than a structural breakdown. Merlijn The trader argued that the recent price drop may have been “engineered liquidity”—a coordinated effort by major players to absorb supply from retail sellers.
Ethereum faces engineered liquidity as Binance pushes prices down while Wintermute absorbs off-exchange, shaking out retail traders. Source: @MerlijnTrade via X
“BINANCE pushes $ETH down. WINTERMUTE absorbs the liquidity off-exchange. This isn’t selling—this is engineered liquidity. The goal is simple: make retail sell the bottom,” Merlijn wrote on X.
Blockchain data shared in his post indicated ETH transfers from Binance to Wintermute wallets during the drawdown from $4,500 to $3,200, suggesting off-exchange accumulation amid retail capitulation.
Technical Outlook: Ethereum’s Support Holds the Key
From a technical standpoint, Ethereum’s near-term trajectory depends on whether bulls can defend the $3,487–$3,500 range. A successful rebound could spark recovery toward $4,000 resistance, while a decisive breakdown risks a retest of the $3,000 psychological level—a zone that previously marked strong buying interest during earlier corrections.
Ethereum ($ETH) may be emerging from a four-year correction, challenging the notion that $4,946 is its peak. Source: @TraderJBx via X
Despite short-term volatility, trader @TraderJBx remains confident in Ethereum’s broader cycle structure. The analyst shared an Elliott Wave model suggesting that ETH may have completed a four-year correction phase (2021–2025) and is now entering a new bullish leg targeting levels above $22,000 in the next macro impulse.
“Do you really think $ETH spent 4 years in a correction just to stop at $4.9k?” he wrote, reinforcing a long-term bullish stance consistent with crypto’s cyclical post-halving behavior.
On-Chain Metrics and Staking Fundamentals Remain Strong
Despite the market turbulence, Ethereum’s network fundamentals remain resilient. The amount of ETH staked on the Beacon Chain recently reached a record 36 million ETH, reflecting long-term holder confidence. Whale addresses also accumulated approximately 1.64 million ETH in October, according to on-chain analytics—a trend often preceding midterm price recoveries.
Moreover, ETH gas fees have remained relatively stable during the sell-off, indicating limited network congestion despite heightened trading volumes. This suggests that Ethereum’s ecosystem continues to handle on-chain activity efficiently even amid volatile market conditions.
Final Thoughts
Ethereum’s near-term outlook remains finely balanced as it hovers around the $3,500 support zone. A sustained defense of this level could set the stage for a short-term rebound toward the $3,900–$4,000 resistance area, while a decisive breakdown risks extending losses toward $3,000.
Ethereum (ETH) was trading at around $3,528, down 5.17% in the last 24 hours at press time. Source: Ethereum Price via Brave New Coin
Despite current volatility, Ethereum’s long-term fundamentals—including growing staking participation, on-chain activity, and the potential impact of a future Ethereum ETF—continue to support a bullish broader trend.
As the market digests macro pressures and recent liquidations, how Ethereum behaves around this support will likely shape sentiment heading into mid-November and beyond.