Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Ethereum (ETH) experienced a notable relief rally on Friday, November 7, gaining over 4% within 24 hours to retest the $3,468 resistance and support level. This price movement saw the ETH/USD pair briefly touch a supply wall established over the preceding two days, raising questions about potential rejection and further capitulation.
Key Drivers Behind the Rally
The recent rebound in Ethereum’s price was primarily fueled by a surge in demand from institutional investors and significant liquidation events among short traders in the broader cryptocurrency market.
Rising Institutional Demand
On-chain data analysis indicated increased institutional interest. Cathie Wood’s ARK Invest reportedly acquired an additional 240,000 shares of BitMine Immersion within 24 hours. Furthermore, JPMorgan purchased 1,974,144 shares of BitMine, valued at approximately $102 million. BitMine currently holds an estimated 3,395,422 ETH, collectively valued at over $11 billion.
Heavy Short Liquidations
Following the sudden pump in ETH and the wider crypto market, substantial liquidations of leveraged crypto traders were recorded. According to market data from CoinGlass, over $621 million was liquidated in the past 24 hours, with approximately $370 million attributed to short traders. This heavy liquidation activity contributed to a “long squeeze” effect, pushing prices higher.
What’s Next for ETH Price?
The future trajectory of Ethereum’s price presents a mixed outlook, with both bearish and bullish technical and macro theses in play.
Bearish Thesis
From a technical analysis perspective, some analysts suggest that the ETH price remains within a mid-term correction. Crypto analyst @devchart noted that Ethereum would need to consistently close above $3,446 to establish bullish momentum. Otherwise, the analyst believes ETH price could be forming a lower high, potentially signaling another selloff.
Macro Outlook
Despite immediate technical concerns, the long-term macro outlook for the ETH/USD pair remains optimistic for some. Analysts project a potential parabolic rally towards price discovery, with a tweet from @CryptoCaesarTA on November 6, 2025, suggesting Ethereum is oversold. This bullish sentiment is further bolstered by the highly anticipated start of the Fed’s Quantitative Easing (QE) program, scheduled to commence on December 1, 2025.
Summary
Ethereum’s recent price rally on Friday, November 7, was driven by a combination of increasing institutional investment, particularly from ARK Invest and JPMorgan, and substantial liquidations of short positions. While technical analysts present a cautious short-term outlook, with a critical resistance level at $3,446, the long-term macro perspective points towards a potential parabolic rally, supported by future economic events like the Fed’s Quantitative Easing program.
