Ethereum (ETH) has started November with a 3.8% drop, trading near $3,738. This decline comes as holders reduce their accumulation. However, key support for Ethereum’s price and technical signals suggest the weakness may be temporary. On-chain data from Glassnode shows robust support zones.
The selling pressure has become evident. The holder accumulation ratio fell to 29.79%. This is its second-lowest level in a month. The last time a similar drop was recorded, on October 9, the price plummeted 14%. Furthermore, the feared “death cross” has formed. This occurs when the short-term moving average crosses below the long-term one, confirming the sellers’ momentary advantage.
Despite these bearish signals, on-chain analysis shows a glimmer of hope. Glassnode’s cost-basis heatmap reveals a dense support zone. Between $3,649 and $3,686, 1.09 million ETH were transacted. This area of high historical accumulation often acts as a cushion. It could incentivize dip-buying and limit deeper losses for the top smart contract cryptocurrency.
Can past accumulation stop the current selling pressure?
The daily chart offers more optimistic clues. The ETH price formed a higher low between October 30 and November 3. Meanwhile, the Relative Strength Index (RSI), which measures momentum, marked a lower low. This pattern is known as a “hidden bullish divergence.” It suggests that, despite the price dip, the underlying momentum remains positive.
The $3,679 level is now the crucial battleground. If Ethereum manages to hold above this support, a rebound toward $3,899 (0.382 Fibonacci level) could begin. Further strength above $4,035 and $4,132 would confirm the recovery. This scenario would invalidate the short-term bearish bias.
However, the alternative scenario is risky. A daily close below $3,679 would invalidate the rebound outlook. It would break the ascending trendline of the triangle. This would open the path for a deeper correction, with a potential target at $3,512. Traders are closely watching if the key support for Ethereum’s price withstands the current selling pressure.
