Ethereum on the rise: is now the time for investors to get involved?

Ethereum on the rise: is now the time for investors to get involved?

On November 5, 2025, cryptocurrency Ethereum (ETH) is showing signs of stabilization after trading above the $3,300 support on Wednesday. This comes after a decline over the past two days in the broader cryptocurrency market, where many other digital currencies also suffered losses.

In recent weeks, Ethereum has hit a weekly low of $3,057 as retail demand remains under pressure. CoinGlass analysis shows average open interest (OI) in futures stands at $38 billion, down 19% since Saturday and a dramatic 47% decline from an all-time high of $70 billion in August.

Market dynamics and investor sentiment

The drop in open interest reflects risk-off sentiment as traders shy away from taking new positions until market conditions stabilize. Ethereum has suffered significant losses since its record high of $4,956 in late August. Factors inhibiting a recovery include profit-taking, macroeconomic uncertainties and the lack of price catalysts.

Analysis by Glassnode shows that the Spent Output Profit Ratio (SOPR) fell to 0.97 from 1.08 at the start of October. This suggests that investors are selling in panic and realizing losses. However, a SOPR value below 1.00 may indicate that weak hands are withdrawing from the market, potentially providing buying opportunities. Additionally, the number of Ethereum coins in profit has dropped from approximately 78 million ETH to 53 million ETH, a decline of 32%. This decline could ease selling pressure and predispose Ethereum to a recovery path.

Technical indicators and outlook

Currently, Ethereum is trading above $3,300, supported by positive macroeconomic news, including China's decision to suspend tariffs on US food products. The Relative Strength Index (RSI) is at 32, indicating decreasing bearish momentum. Higher RSI readings could increase the chances of reclaiming the 200-day exponential moving average (EMA) line at $3,601.

However, the Moving Average Convergence Divergence (MACD) indicators continue to signal selling pressure since Monday. Traders could remain bearish as long as the blue MACD line remains above the red signal line. Important price areas for traders include support at $3,057 and resistance at $2,880. If the market develops positively, new opportunities could arise for investors.

For detailed information and analysis, visit FXStreet.