Ethereum in a downward trend: Investors are retreating – where is the support?

Ethereum in a downward trend: Investors are retreating – where is the support?

On November 4, 2025, Ethereum (ETH) is trading slightly above $3,500 and continues its decline for the second consecutive day. The negative mood in the broader crypto market is reflected in a weak derivatives market. Many traders are retreating due to extreme volatility, and institutional investors are showing little interest in Ethereum spot ETFs. On Monday, US-listed ETFs saw outflows of a notable $136 million, pointing to deeper uncertainty. Overall, cumulative net inflows are $14.23 billion, while net assets are approximately $24 billion.

None of the nine ETH ETFs recorded net inflows. Particularly noticeable are the outflows from BlackRock's ETHA, which leads with $82 million, followed by Fidelity's FETH with an outflow of $25 million. These developments highlight the difficulties faced by Ethereum.

Decline in retail demand and futures market

Retail demand for Ethereum has also fallen, as evidenced by a decline in futures open interest (OI) to $44.72 billion from about $63 billion in October. The OI measures the nominal value of outstanding futures contracts and serves as an indicator of investor interest and confidence. The ongoing decline suggests that traders are increasingly closing their long positions and favoring short positions. The OI weighted funding rate averages 0.0038% on Tuesday, supporting the risk-off sentiment.

More and more investors are tending to take short positions, which makes it difficult for the price to recover. Technical indicators clearly point to a bearish trend. The Moving Average Convergence Divergence (MACD) has maintained a sell signal since Monday, while the Relative Strength Index (RSI) is at 33 and trending towards oversold areas.

Technical outlook and support

If Ethereum closes below $3,500, a 4% decline to $3,350 could follow, which is considered a previously tested support area from early August. However, a possible short-term reversal could occur if buyers use the decline to push ETH above the 200-day Exponential Moving Average (EMA) at $3,606. The current market situation and the extreme conditions therefore require quick action and, if necessary, a rethink of investors' strategies.

Overall, Ethereum is in a critical phase where both institutional and retail investors are waiting to see how the situation develops. The next period could be crucial for the price development and confidence in the Ethereum market. How FXStreet reported, the general mood is complex and characterized by uncertainty.