Ethereum News Today: Ethereum's $3,679 Threshold: Bear Market Correction or Bullish Rebound?

Ethereum's price has tumbled in early November, with the token trading near $3,738 after a 3.8% drop in the past 24 hours and a 17% decline in October. The sell-off has raised questions about the sustainability of the downturn, but on-chain data and technical indicators suggest the weakness may be temporary. Key factors driving the recent volatility include a $2.6 billion Ethereum options expiration on Deribit, strong inflows into ETH ETFs, and shifting holder behavior, according to a TradingView report.

The holder accumulation ratio — a metric tracking how much existing Ethereum wallets are adding to their balances — has fallen to 29.79%, its second-lowest level in a month. This decline mirrors a similar drop on October 9, which preceded a 14% price drop from $4,370 to $3,750, according to a Yahoo Finance analysis. Analysts attribute the current pullback to long-term holders trimming exposure or waiting for more favorable entry points. Meanwhile, the formation of a "death cross," where Ethereum's short-term moving average crossed below its long-term average, has reinforced bearish sentiment, the Yahoo Finance analysis noted.

However, on-chain support zones and technical patterns hint at a potential rebound. A cost-basis heatmap reveals a strong support cluster between $3,649 and $3,686, where approximately 1.09 million ETH were last transacted. Such dense accumulation typically acts as a buffer, potentially triggering dip-buying if the price dips further, the Yahoo Finance analysis adds. Additionally, Ethereum's price action within an ascending triangle — a bullish pattern characterized by higher lows — suggests buyer resilience. Between October 30 and November 3, Ethereum formed a higher low while the RSI recorded a lower low, a hidden bullish divergence that indicates positive underlying momentum despite the price dip, as the Yahoo Finance piece also described.

The ETF landscape offers a counterpoint to the recent selloff. Ethereum spot ETFs attracted $9.6 billion in inflows during Q3 2025, outpacing Bitcoin's $8.7 billion in the same period, a finding highlighted in the TradingView report. These inflows, coupled with large Ethereum withdrawals from exchanges, signal growing investor confidence and accumulation ahead of potential gains, the TradingView report also observed.

Despite the bearish near-term signals, the market remains cautiously optimistic. A symmetrical triangle pattern has persisted since October 7, with the latest rejection at the upper trendline on October 27 confirming resistance without invalidating the broader setup, according to a Yahoo Finance report. The strongest supply cluster, between $4,283 and $4,326, continues to cap rallies, as prior buyers may sell to lock profits when Ethereum approaches this range, the Yahoo Finance report added.

Analysts highlight a critical threshold: If Ethereum holds above $3,679, a rebound toward $3,899 could begin, with further strength above $4,035 and $4,132 invalidating the short-term bearish bias. Conversely, a close below $3,679 would break the ascending triangle and open the door to a deeper correction, potentially pushing prices toward $3,512, according to a BeInCrypto analysis.