In brief
- Ethereum’s spot outflows hit $359M Monday, the third-largest since October, signaling dip buying.
- Historical data shows similar outflows preceded price bounces of 7% to 13%.
- An expert says the signal is bullish but depends on macro conditions and fresh demand.
Ethereum is flashing a potentially bullish signal as investors are buying the dips during its recent downturn, a pattern that has previously preceded price rebounds.
The spot exchange netflow for Ethereum hit -$359 million on November 3, marking the third-largest single-day outflow since October, according to CoinGlass data.
The negative netflow indicates 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 drop, it could be seen as investors buying the dip for long-term holding.
The two previous instances of major outflows, including $677 million on October 10 and $361 million on October 21, were followed by price surges of 13% and 7.9%, respectively.
The recent sell-off, which pushed Ethereum to an intraday low of $3,466, also liquidated $325 million in long positions, per CoinGlass data—a flush of leverage that often precedes a bullish reversal.
“Ethereum’s $359 million spot outflow is significant,” Shivam Thakral, CEO of Indian exchange BuyUcoin, told Decrypt. “It could point to renewed accumulation or dip buying. Typically, when investors move Ethereum off exchanges, it signals growing confidence and long-term holding intent.”
When asked if the historical pattern of a 7% to 13% bounce will repeat, the analyst noted that the “signal leans bullish,” but the follow-through depends on whether fresh demand materializes in the coming sessions.
He also highlighted that Ethereum’s typically strong year-end seasonality could amplify any potential rebound. “That historical tailwind could amplify this bounce, especially if on-chain activity and staking flows stay strong,” Thakral said.
A key supportive factor is the temporary pause in the U.S.-China trade war, which removes a major overhang for risk assets.
The analyst, however, tempered his outlook with caution, suggesting that “broader macro risks from rate cut-induced volatility to geopolitical uncertainty still linger,” meaning global liquidity conditions will be the deciding factor in whether Ethereum’s expected rally materializes.
Ethereum is down 5.9% over 24 hours, and is currently trading at $3,498, with its fortnightly and monthly performance down double digits, per CoinGecko data.
Users of prediction market Myriad, launched by Decrypt‘s parent company Dastan, flipped bearish on Ethereum Tuesday morning after an indecisive start to the week, placing a 61% chance on its next move taking it to $3,100 rather than $4,500.
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