Ethereum Price Surge: Bear Trap Reversal or Dead-Cat Bounce? What’s Next for ETH in 2025

Ethereum’s price is climbing—again. Is this the real deal or another fakeout?

After months of sideways action, ETH bulls are back in the driver’s seat. But seasoned traders know crypto rallies can vanish faster than a VC’s promises during a bear market.

Key factors driving the move:

- Spot ETF hype cycle reloaded? Grayscale’s latest filing sparks fresh speculation.

- Layer-2 activity hits record highs—actual usage or just airdrop farmers at work?

- Bitcoin’s dominance slips below 40%, altcoin rotation in full effect.

Technical outlook: The daily chart shows ETH breaking through the 200-day MA, but volume remains suspect. Watch for follow-through—or another classic ‘Bart Simpson’ pattern.

Institutional angle: BlackRock’s ETH holdings now exceed MicroStrategy’s Bitcoin stash. Whether that’s smart money positioning or just hedging their BTC bets remains to be seen.

Bottom line: This could be the start of altseason… or just another opportunity for smart money to dump bags on retail. (Bankers gotta eat too.)

Ethereum (ETH) price recorded a relief rally on Friday, November 7. The large-cap altcoin gained over 4% during the past 24 hours to retest a resistance/support level of around $3,468 during the mid-North American trading session.

Notably, the ETH/USD pair retested a supply wall established during the last two days. As such, the ETH price may be rejected again and trigger further capitulation.

Source: CoinMarketCap

Main Reasons Why Ethereum Price is Up Today

Rising Demand from Institutional Investors

The mild ETH price rebound was fueled by institutional demand. On Friday, on-chain data analysis revealed that Cathie Wood’s ARK Invest bought an additional 240K shares of BitMine Immersion in the past 24 hours.

Additionally, JPMorgan purchased 1,974,144 shares of BitMine, valued at about $102 million. As such, BitMine currently holds 3,395,422 ETH, worth more than $11 billion.

Heavy liquidation of short traders

Following the sudden ETH and wider crypto pump, heavy liquidation of short traders was recorded. According to market data from CoinGlass, more than $621 million was liquidated from Leveraged crypto traders in the past 24 hours, with around $370 million involving short traders.

Heavy liquidation of short traders resulted in a long squeeze.

What’s Next For ETH Price?

Bearish thesis

From a technical analysis standpoint, the Eth price has been trapped in a mid-term correction. Popular crypto analyst @devchart noted that the ETH price will shift to bullish momentum if it consistently closes above $3,446.

Source: X

Otherwise, the crypto analyst believes that the ETH price is gradually forming a lower high in preparation for another selloff. 

Macro outlook

In the long term, the ETH/USD pair is on the cusp of a parabolic rally towards price discovery. 

$ETH – #Ethereum is oversold. pic.twitter.com/VPd1GHjxK2

The macro bullish outlook for ETH is bolstered by the highly anticipated Fed’s Quantitative Easing (QE) set to begin on December 1, 2025.