Ethereum (ETH) Price Analysis: Liquidity Sweep Expected Before Major Reversal

Ethereum's price action suggests traders are in for one final shakeout before the real move begins.

The Setup

Technical indicators point to a classic liquidity grab scenario—where ETH briefly dips to sweep remaining sell orders before reversing course. Market makers love these moves; retail traders get their stops hunted while institutions accumulate positions.

Pattern Recognition

Key support levels have held through multiple tests, creating what technical analysts call a 'spring' formation. The tighter the coil, the stronger the eventual breakout. Volume profiles confirm accumulation is happening beneath the surface.

Market Mechanics

Liquidity sweeps serve a dual purpose: they clear out weak hands while creating optimal entry points for larger players. It's the financial equivalent of a controlled burn—painful for some, profitable for others who understand the game.

Timing the Turn

Watch for the classic reversal signals: decreasing selling volume on dips, increasing bid support at key levels, and sudden momentum shifts that catch the majority off guard. The best moves often happen when most analysts are looking the other way—or still busy writing bearish reports to justify their previous calls.

When the reversal comes, it typically arrives not with a whisper but with a surge that leaves skeptics scrambling. Because nothing moves markets quite like the sound of missed opportunities echoing through trading desks.

TLDR

• Ethereum is trading in a tight range near $3,800 with key resistance between $3,900-$4,200 and support at $3,750
• Analyst Ted Pillows suggests ETH could sweep down to $3,750 before bouncing back toward resistance levels
• The price declined below $3,850 and broke a rising channel support at $3,840, entering bearish territory
• ETH treasury companies added 550,000 ETH in October despite the token falling 13.34% during the month
• Technical indicators show bearish momentum with price trading below the 100-hour moving average and support at $3,680

Ethereum has entered a period of consolidation as prices hover around $3,800. The second-largest cryptocurrency by market cap is testing important levels that could determine its next move.

Market analyst Ted Pillows recently shared data from Coinglass showing the ethereum liquidity heatmap. The analysis reveals clusters of limit orders on both sides of current prices.

Most of the $ETH liquidity is stacked to the upside.

There's one liquidity cluster around the $3,600-$3,800 level, which could be taken out first.

After that, a reversal to the upside could happen. pic.twitter.com/7tg6nDjNta

— Ted (@TedPillows) November 2, 2025

The upper band sits between $3,900 and $4,200. This range contains heavy concentrations of sell orders. Traders have positioned themselves in this zone expecting potential resistance.

On the lower end, liquidity clusters around $3,750. This level acts as a magnet for price action and represents key support if selling pressure increases.

Price Action and Technical Levels

Ethereum recently failed to maintain support above $3,850. The token broke below a rising channel that had support at $3,840.

The dream scenario: Ethereum $ETH bounces off $3,800, smashes through $4,900, and rockets to $8,000. pic.twitter.com/S6z02riUDf

— Ali (@ali_charts) November 3, 2025

The current price sits below the 100-hour Simple Moving Average. This shift puts ETH in bearish territory according to technical indicators.

The MACD indicator shows gaining momentum in the bearish zone. The RSI has dropped below 50, confirming the downward pressure.

Initial resistance now sits at $3,840. The next barrier stands at $3,860 NEAR the 100-hour moving average.

If ETH pushes higher, the first major resistance level is $3,920. A break above this could open the path to $4,000 and potentially $4,200.

On the downside, support starts at $3,680. Below that, the next major support zones are $3,650 and $3,550.

Treasury Activity Shows Confidence

ETH treasury companies added 550,000 ETH during October. This happened despite prices falling 13.34% during the month.

The inflow is lower than the 1.5 million ETH seen in August. However, it still represents continued institutional interest in Ethereum.

The broader crypto market faced pressure from various macro factors throughout October. Bitcoin and other major cryptocurrencies also experienced volatility.

Pillows suggests Ethereum could be setting up for a liquidity sweep. This pattern involves price dipping into high liquidity zones to trigger stop losses before reversing upward.

If this scenario unfolds, a short-term MOVE toward $3,750 could precede a bounce. The rebound might target the $3,900 to $4,200 resistance zone.

Current trading volume sits at $17.57 billion. This represents a decline of 53.83% from the previous 24-hour period.

Ethereum gained 0.44% in the past 24 hours but remains down 1.64% over the past week. The token could see a 10% gain if it reclaims the upper resistance band, though this WOULD likely involve liquidations on both sides of the market first.