Finance

Ethereum’s Crossroads: Can ETH Bulls Defy Market Volatility and Surge Past $4,000?

Ethereum struggles near $3,714 amid volatility, with on-chain strength facing potential drop to $3,300.

byAndres Castro

November 3, 2025, 10:49 AM

A 3D render of a stylized, deep red bull sculpture composed of low-poly, angular geometric facets on a white background.

A digitally rendered, faceted red bull, often symbolizing aggressive financial markets. By MDL.

Executive Summary

Ethereum is at a critical juncture around $3,714, facing high volatility and pressure, with short-term technicals hinting at a potential drop to $3,300 while bulls attempt to reclaim $4,000.

Despite a recent 4.6% price decline, Ethereum exhibits strong on-chain fundamentals, including massive exchange withdrawals indicating long-term accumulation, over $165 billion in digital dollar assets, and a 45% surge in stablecoin transactions.

Key price levels for Ethereum include immediate support at $3,650-$3,700, critical support near $3,300, and stiff resistance between $3,950-$4,000, with a decisive close above $4,000 potentially leading to $4,200-$4,300.

The Story So Far

Ethereum’s current price volatility is driven by broader cryptocurrency market pressures, creating a dichotomy where robust on-chain fundamentals, such as substantial digital dollar reserves and increased stablecoin activity, suggest underlying network strength and long-term accumulation, while short-term technical indicators point to potential price declines amidst prevailing market uncertainty.

Why This Matters

Ethereum’s current position at a critical price point around $3,714 signifies a pivotal moment for the broader cryptocurrency market, as its immediate trajectory is expected to heavily influence overall market direction. This juncture is characterized by a conflict between robust long-term on-chain fundamentals, indicating network strength and accumulation despite price dips, and short-term bearish technical indicators, suggesting potential further declines. Consequently, ETH’s ability to either leverage its underlying strength to reclaim $4,000 or succumb to market pressures could dictate investor sentiment and market stability in the coming days.

Who Thinks What?

Short-term technical indicators and some traders suggest Ethereum faces potential declines, with a breakdown below immediate support possibly leading to a drop towards $3,300, as momentum indicators remain neutral to slightly bearish.

Conversely, those observing Ethereum’s on-chain fundamentals point to robust network strength and long-term accumulation, highlighted by significant withdrawals from exchanges, over $165 billion in digital dollar assets, and a surge in stablecoin transactions.

Ethereum bulls are attempting to reclaim the $4,000 level, believing a decisive daily close above this resistance could pave the way for a rally towards $4,200–$4,300.

Ethereum (ETH) is at a critical juncture, currently trading around $3,714, as the broader cryptocurrency market experiences heightened volatility and pressure. While strong on-chain fundamentals suggest long-term accumulation and network strength, short-term technical indicators hint at a potential drop to $3,300, even as bulls attempt to reclaim the $4,000 level. The cryptocurrency’s next decisive move is expected to significantly influence the market’s direction in the coming days.

Market Pressure and On-Chain Resilience

Ethereum’s price has declined by 4.6% over the past 24 hours, reflecting the wider market’s struggle. This pullback coincides with massive withdrawals from centralized exchanges for both Bitcoin and Ethereum, a trend often interpreted as a sign of long-term accumulation rather than immediate selling pressure. These outflows suggest that traders may be moving assets to cold storage or staking platforms.

Despite the short-term price dip, Ethereum’s on-chain activity remains robust. The network currently hosts over $165 billion in digital dollar assets, a figure surpassing the foreign exchange reserves of several countries. Furthermore, stablecoin transactions on Ethereum saw a significant surge of over 45% in October, reaching approximately $2.8 trillion in monthly volume. This influx into stablecoins indicates a cautious stance among traders, who are parking liquidity in dollar-backed assets while awaiting clearer market direction.

Key Price Levels and Technical Outlook

For traders, Ethereum’s immediate support zone lies between $3,650 and $3,700, where buyers have historically stepped in to prevent further declines. A sustained breakdown below this range could accelerate losses, pushing ETH toward the next critical support level near $3,300, which aligns with the 100-day moving average and previous consolidation support.

Conversely, Ethereum faces stiff resistance around the $3,950 to $4,000 zone, which has capped bullish attempts recently. A decisive daily close above $4,000 could pave the way for a rally toward $4,200–$4,300, potentially reigniting market optimism. However, momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain neutral to slightly bearish, suggesting waning buyer strength in the short term.

Outlook for November

Ethereum’s price action reflects the prevailing uncertainty in the crypto market. While robust on-chain fundamentals, including substantial digital dollar reserves and increasing stablecoin activity, underscore the network’s underlying strength, the short-term technical chart presents a more cautious picture. The coming days will be crucial in determining whether ETH can leverage its fundamental strength to overcome technical resistance or if it will succumb to broader market pressures.