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- ETH broke multiple support levels, signaling continued fragility.
- Record stablecoin inflows aren’t translating into strong buying.
- $3.2k support remains tentative; sustained conviction is needed for a breakout.
Ethereum (ETH) kicked off November with volatility, dropping through two critical floors in quick succession. A 7.78% dip failed to flip $3.8k into support, followed by an 8.80% drop struggling to hold $3.5k. These consecutive lower lows point to a fragile market structure, suggesting that ETH’s current consolidation around $3.2k may not yet signal a bottom.
The market also experienced a $2 billion liquidation cascade on November 3–4, echoing October’s turbulence, though on a smaller scale. Ethereum’s repeated tests of previous floors highlight a persistent bearish sentiment. Past crashes show that even local support levels don’t guarantee a breakout unless follow-through buying emerges.
Liquidity Surges, But Conviction Lags
Despite record stablecoin inflows on Ethereum, buying conviction remains low. Total Value Locked (TVL) in DeFi has dropped roughly $20 billion over the past month, indicating that funds are either leaving protocols or staying on the sidelines. On the derivatives front, ETH’s Open Interest decreased by $5 billion, signaling lighter liquidation pressure than during October’s crash.
The lack of follow-through bids means that even with ample liquidity, Ethereum’s market structure remains fragile. While HODLers continue accumulating, realized profits and losses show deep red figures. On November 4, ETH’s realized P/L hit -$626 million, an eight-month low, underscoring ongoing caution among investors.
Also Read: SharpLink Gaming Sells $14M in Ethereum as SBET Stock Falls 12% Amid Market Pressure
Bottom Signals Remain Unclear
Even with liquidity flowing in, Ethereum’s post-crash cycle mirrors October’s patterns. FOMO has yet to materialize across major sectors, leaving ETH’s $3.2k floor tenuous. Analysts suggest that only sustained buying and clear market conviction could lift ETH toward its previous highs. Until then, caution prevails.
Ethereum’s recent price action illustrates a market still grappling with post-crash fragility. Despite record stablecoin supply and inflows, weak conviction and continued selling pressure make the $3.2k support level precarious. Investors may need patience, as a decisive bottom and follow-through are still pending.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
