Ethereum News Today: Institutional Buys and Bullish Divergence Signal Ethereum's Rebound Potential

Ethereum traders are increasingly "buying the dip" as the cryptocurrency's recent price correction coincides with strong on-chain signals of institutional accumulation and technical bullish divergence. Despite Ethereum (ETH) hitting a 2025 low of $3,466 on November 3—the third-largest single-day spot outflow since October, at -$359 million—investors are interpreting the move as a strategic entry point. Historical data shows similar outflows have preceded price rebounds, with prior episodes like the $677 million withdrawal on October 10 followed by 13% gains, according to a Yahoo Finance report https://finance.yahoo.com/news/ethereum-traders-buy-dip-despite-124346874.html.

Technical analysts point to a hidden bullish divergence in Ethereum's price action, where higher lows in both price and the Relative Strength Index (RSI) suggest sustained buying pressure despite short-term volatility, according to a Coinotag analysis https://en.coinotag.com/ethereum-exhibits-hidden-bullish-divergence-potentially-aiming-for-8000/. This pattern, combined with a symmetrical triangle breakout and robust trading volume of $30.43 billion, has led some experts to project price targets above $8,000, contingent on holding key support levels near $3,000. The market cap of $468.01 billion and growing holder conviction, as indicated by on-chain metrics, further reinforce the bullish case.

Institutional demand has intensified, with Tom Lee's BitMine acquiring $294 million in Ethereum at an average price of $3,909, bringing its total holdings to 3.39 million ETH—valued at $12.5 billion, as reported in an Investing.com analysis https://www.investing.com/analysis/ethereum-drops-amid-heavy-selling-despite-record-treasury-holdings-200669593. This follows a $300 million ETH purchase in October 2025, signaling long-term conviction amid price declines. Similarly, ZKsync's Atlas upgrade has redefined Ethereum's liquidity infrastructure, enabling real-time capital flows between Layer-1 and Layer-2 networks with sub-second finality and near-zero fees, according to a CryptoTimes article https://www.cryptotimes.io/2025/11/01/zksync-atlas-upgrade-redefines-ethereum-liquidity-network/. The upgrade, praised by Ethereum co-founder Vitalik Buterin, allows institutional investors to access Ethereum's liquidity hub directly, reducing fragmentation and enhancing scalability, as noted in a CryptoFront News piece https://cryptofrontnews.com/vitalik-buterin-hails-zksync-atlas-upgrade-for-redefining-ethereum-liquidity/.

Market participants remain cautiously optimistic. Shivam Thakral of BuyUcoin noted that the "signal leans bullish," though he emphasized the importance of fresh demand and macroeconomic conditions in determining Ethereum's next move. Year-end seasonality and a temporary pause in the U.S.-China trade war are seen as tailwinds, but risks like rate cut-induced volatility and geopolitical uncertainty linger.

Ethereum's current price of $3,498 reflects a 5.9% drop over 24 hours, with fortnightly and monthly declines exceeding double digits. However, the asset's resilience—bolstered by a 5.2% 7-day gain and controlled 30-day volatility of 45%—highlights its appeal amid broader market turbulence. As on-chain activity and staking inflows remain strong, the convergence of technical indicators and institutional buying positions Ethereum for potential retests of all-time highs, pending confirmation of key resistance levels.