Ethereum has confirmed a bullish reversal pattern as the supply of ETH held on exchanges falls to its lowest level in years, easing selling pressure and strengthening the case for an upward trend shift.
Ethereum rebounds after two-week decline
According to data from online resouces, Ethereum (ETH) fell for nearly two weeks—from $3,633 on Nov. 10 to a monthly low of $2,680 on Nov. 21. Since then, ETH has climbed back above the key $3,000 level, a zone analysts say is crucial for validating a transition from bearish to bullish momentum.
Trading at $3,013, Ethereum is up 7.3% over the past week but remains almost 40% below its all-time high reached in August this year.
Three catalysts driving Ethereum this week
Three major factors have fueled ETH’s recovery in recent days.
First, Ethereum’s price strengthened as exchange reserves continued falling sharply. CryptoQuant data shows that tokens held on exchanges have dropped from 20.9 million in early July to 16.8 million currently—a multi-year low. Lower exchange supply typically signals reduced near-term selling pressure, which helps support upward price momentum.
Second, the community is building anticipation for Ethereum’s upcoming Fusaka upgrade, tentatively scheduled for Dec. 3. The update—set to be the network’s largest since The Merge—aims to improve data availability for rollups, addressing one of Ethereum’s most significant scaling constraints.
Third, inflows have returned to U.S. spot Ether ETFs. Data from SoSoValue shows that the nine American spot ETH ETFs recorded $236 million in net inflows this week, reversing three straight weeks of outflows totaling $1.7 billion. Meanwhile, ongoing accumulation by institutional players such as Bitmine has further supported long-term investor confidence.
Ethereum price analysis: falling wedge breakout in focus
On the daily chart, Ethereum has broken out of a falling wedge—a bullish reversal structure characterized by lower lows and lower highs within two descending, converging trendlines. Such breakouts often signal the beginning of an upward trend shift.
ETH now faces its next key resistance at $3,096, the 200-day moving average, which has capped the asset’s upside throughout November. A decisive breakout above this level could open the door to a rally toward $3,600, a region that aligns closely with the 61.8% Fibonacci retracement from the recent swing high to swing low. This level often acts as a major reaction zone where buyers look for confirmation of a broader trend reversal.
However, if ETH fails to hold above the crucial $3,000 support area, the price could slide toward $2,750—its next major support level and the 38.2% Fibonacci retracement.
