Ethereum Traders Buy the Dip Despite Third-Largest Spot Outflow Since October

Core Insights - Ethereum is showing a potentially bullish signal as investors are buying the dips during its recent downturn, which has historically preceded price rebounds [1] - The recent spot exchange netflow for Ethereum recorded -$359 million on November 3, indicating a significant outflow and a bullish sentiment among investors [1][3] - Historical patterns suggest that major outflows have been followed by price surges, with previous instances of $677 million and $361 million outflows leading to increases of 13% and 7.9% respectively [2] Market Activity - The recent sell-off pushed Ethereum to an intraday low of $3,466 and liquidated $325 million in long positions, a flush of leverage that often precedes bullish reversals [2] - Ethereum's current trading price is $3,498, reflecting a 5.9% decline over 24 hours, with fortnightly and monthly performance down in double digits [5] Investor Sentiment - The significant outflow of $359 million is interpreted as a sign of renewed accumulation or dip buying, indicating growing confidence and long-term holding intent among investors [3] - Analysts suggest that the historical pattern of price rebounds following major outflows could repeat, but the actual outcome will depend on fresh demand in the coming sessions [3] Seasonal Trends - Ethereum's strong year-end seasonality could amplify any potential rebound, especially if on-chain activity and staking flows remain robust [4] - A temporary pause in the U.S.-China trade war is seen as a supportive factor for risk assets, potentially benefiting Ethereum [4] Broader Market Context - Despite the bullish signals, there are broader macro risks such as rate cut-induced volatility and geopolitical uncertainty that could impact Ethereum's expected rally [5] - Users of the prediction market Myriad have flipped bearish on Ethereum, placing a 61% chance on its next move taking it to $3,100 rather than $4,500 [6]