Ethereum has made a substantial recovery, climbing over 7% this past week to trade at $3,013. This represents a notable rebound from a monthly low of $2,680, previously reached on November 21. The second-largest cryptocurrency by market capitalization is still approximately 40% shy of its all-time high reached earlier in August, but this latest upwards momentum is raising hopes among investors.
The recent price movement aligns with some significant market developments. One of the most striking trends is the sharp decline in Ethereum’s exchange reserves, which according to data from CryptoQuant, have fallen from 20.9 million ETH in July to just 16.8 million as of the latest figures. This reduction in available liquidity on exchanges typically lessens immediate selling pressure.
Lower exchange supply implies fewer tokens are readily available for sellers, which has historically contributed to upward price pressures. Notably, the Ethereum community is also eagerly anticipating the upcoming Fusaka upgrade, expected to occur on December 3, which promises to be the largest network update since The Merge. The upgrade aims to tackle critical issues regarding data availability for rollups, addressing one of the network’s significant bottlenecks.
ETF Inflows Show Positive Shift
In addition to the bullish price action, spot Ether ETFs have reported a return of capital this week, reversing a downward trend that had persisted for three consecutive weeks. The nine U.S. spot Ether ETFs recorded an impressive $236 million in net inflows this week, providing a much-needed boost after witnessing outflows totaling $1.7 billion in previous weeks.
On November 26, these ETFs alone saw total net inflows amounting to $60.82 million, marking four consecutive days of positive inflow. Interestingly, while Bitcoin spot ETFs reported a modest net inflow of $21.12 million, it’s clear that interest in Ethereum is rebounding, contributing to the overall resurgent sentiment surrounding ETH.
Another key player in the ecosystem, BitMine, demonstrated its confidence in Ethereum’s future by acquiring 14,618 ETH for $44.34 million this past Thursday. This purchase is part of BitMine’s overarching strategy to accumulate ETH, which has now led to the company holding approximately 3,629,701 ETH valued at around $10.9 billion—about 3% of the entire Ethereum supply.
Tom Lee, BitMine’s chair, recently confirmed ambitions to secure 5% of Ethereum’s total supply as the company continues to express strong support for the cryptocurrency. This growing accumulation could further influence market sentiment and stability.
Technical Insights and Future Outlook
From a technical standpoint, Ethereum has successfully broken out of a falling wedge pattern on the daily chart, a move that often indicates a potential bullish reversal. The next key resistance level to watch is $3,096, coinciding with the 200-day moving average; a successful breach above this level could pave the way for a rally towards $3,600, aligning with the 61.8% Fibonacci retracement level.
Conversely, if Ethereum struggles to maintain support at the $3,000 mark, it might dip towards $2,750—the 38.2% Fibonacci retracement level. Forecasts from industry experts, including Tom Lee, suggest that ETH could trade between $7,000 and $9,000 by the end of January 2026, following a potential bottoming pattern near $2,500.
As the crypto markets remain volatile yet optimistic, Ethereum’s recent price action, alongside declining reserves and renewed ETF interest, paints a bright picture for the future. Investors and enthusiasts alike are certainly keen to see how the upcoming Fusaka upgrade will impact the landscape ahead.
