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

ethereum is flashing a potentially bullish signal as investors buy the dips during its recent downturn, a pattern that has previously preceded price rebounds.

Net spot exchange flow for Ethereum reached $359 million on November 3, marking the third largest one-day flow since October, according to CoinGlass data.

The negative netflow indicates that more Ethereum was moved from exchange wallets into private custody than was deposited, an action typically interpreted as bullish among crypto investors.

Since this activity aligns with the recent fall, it could be seen as investors buying the dip for a long-term hold.

The two previous cases of major flows, including $677 million on October 10 and $361 million on October 21, were followed by prices of 13% and 7.9%, respectively.

The recent selloff, which pushed Ethereum to an intraday low of $3,466, also liquidated $325 million in long positions, for CoinGlass data– a leverage flush that often precedes a bullish reversal.

“Ethereum’s $359 million spot flow is significant,” Shivam Thakral, CEO of Indian exchange BuyUcoin, said. Decrypt. “It could indicate renewed accumulation or dive buying. Typically, when investors move Ethereum off exchanges, it signals growing confidence and an intention to hold for the long term.”

When asked if the historical pattern of a 7% to 13% rebound will repeat, the analyst noted that the “signal leans bullish”, but the following depends on whether fresh demand materializes in the coming sessions.

He also highlighted that Ethereum’s typical year-end seasonality could amplify any potential recovery. “This historical tailwind could amplify this rebound, especially if chain activity and staking flows remain strong,” Thakral said.

A key support factor is the temporary pause in the US-China trade war, which is removing a major overhang for risk assets.

The analyst, however, tempered his outlook with caution, suggesting that “broader macro risks from rate-induced volatility to geopolitical uncertainty persist,” meaning global liquidity conditions will be the deciding factor in whether Ethereum’s expected rally materializes.

Ethereum is down 5.9% in 24 hours, and is currently trading at $3,498, with its fortnightly and monthly performance in double digits, for CoinGecko data.

The users of the prediction market Myriadlaunched by DecryptDastan, Ethereum’s parent company, turned bearish on Tuesday morning after an indecisive start to the week, putting a 61% chance on its next move, taking it to $3,100 instead of $4,500.