Ethereum News Today: Investors Accumulate ETH as ETFs Lose $219M, Eye $3,550 Breakout

Ethereum (ETH) faces a critical juncture as the cryptocurrency hovers near $3,324, with analysts warning that a breakout above $3,550 could trigger a surge in short liquidation pressure totaling $892 million. This scenario underscores the volatile dynamics in the crypto market, where technical indicators, institutional flows, and tokenized asset growth are converging to shape ETH's trajectory.

Recent price action reveals Ethereum's resilience after a brief dip to the $3,000 level, with trading volumes surging over 44% as the asset tests key support and resistance zones, according to a Yahoo Finance report. CoinGlass data highlights the fragility of the market, noting $1.78 billion in liquidations across crypto derivatives in the past 24 hours, including $410.45 million in long positions, according to the same report. The correction follows Ethereum's failure to hold anchored volume-weighted average price (VWAP) levels, a structural shift analysts attribute to macroeconomic pressures like U.S. tariff concerns, as noted in the Yahoo report.

Ethereum's tokenized asset base, now valued at $201 billion, reinforces its dominance in the crypto ecosystem, accounting for two-thirds of the global $314 billion tokenized asset market, according to a TradingView analysis. This growth is driven by institutional adoption, with onchain fund assets under management (AUM) surging 2,000% since early 2024, fueled by firms like BlackRock and Fidelity, as noted in the TradingView analysis. Meanwhile, Ethereum's exchange supply has hit a yearly low, signaling accumulation by investors and hinting at a stronger market floor, as also noted in the TradingView analysis.

Ethereum ETFs are experiencing sustained outflows, with $219 million in net withdrawals on Nov. 4, extending a five-day trend that mirrors Bitcoin ETF outflows, according to the Yahoo report. This contrasts with Solana's ETFs, which have attracted $2.1 billion in inflows over nine weeks, reflecting shifting investor sentiment, as reported by FXStreet. On-chain data also reveals a net outflow of 184,700 ETH from centralized exchanges (CEX) in the past 24 hours, led by Binance's 135,300 ETH outflow, as reported by LookOnChain. Such movements suggest a strategic shift toward long-term holding rather than speculative trading.

Technical indicators paint a mixed picture. Ethereum's price remains below its 200-day exponential moving average (EMA) at $3,595, with the Relative Strength Index (RSI) at 43, signaling cooling bullish momentum, as reported by FXStreet. A break above $3,550 could trigger a rally, but traders must navigate key resistance levels at $3,650 and $3,920, as suggested in an Coinpedia analysis. Short positions have also grown, with the OI-Weighted Funding Rate for Ethereum futures plummeting to 0.0007% from 0.0067% the previous day, reflecting increased bearish bets, as noted in the FXStreet report.

Long-term optimism persists, however. 10x Research notes that Ethereum's onchain liquidity has doubled since the U.S. election, with USDT supply on the network surpassing $102 billion, as noted in the Coinpedia analysis. This liquidity surge, coupled with regulatory tailwinds under the Trump administration favoring transparent onchain activity, positions Ethereum as a potential 2026 breakout candidate, as also noted in the Coinpedia analysis. Institutional staking activity, led by entities like P2P Validator, is further solidifying Ethereum's role as a hub for yield generation, as noted in the Coinpedia analysis.

The market's near-term outlook remains cautious. Institutional demand for Bitcoin and Ethereum has waned amid macroeconomic uncertainty, including the U.S. government shutdown, as reported by FXStreet. Ethereum ETFs recorded zero net flows on Nov. 11, with cumulative inflows at $13.86 billion and net assets at $23.43 billion, as reported by FXStreet. Retail traders, meanwhile, are increasingly shorting ETH, with open interest (OI) metrics pointing to heightened bearish sentiment, as reported by FXStreet.

As Ethereum navigates this inflection point, the interplay of tokenized asset growth, institutional flows, and technical dynamics will be pivotal. A sustained recovery above $3,200 could initiate a gradual rebound, but a failure to hold key support levels risks further consolidation, as noted in the Yahoo report. For now, market participants are bracing for a pivotal test of Ethereum's resilience in the coming weeks.