The second-largest cryptocurrency by market capitalization is showing early technical signs of stabilization, trading around $3,331 at the time of writing with a 1.3% daily gain.
Although the recent market drop rattled investors, several analysts believe the move may have pushed ETH into a zone where accumulation becomes attractive once again. Popular market analyst Michaël van de Poppe noted on X that while the correction was “a little deeper than expected,” this remains a favorable region for potential long-term entries.
Indicators Suggest Weakening Bearish Momentum
Ethereum’s daily chart reveals that selling pressure is beginning to ease after several consecutive red candles. The Relative Strength Index (RSI) has rebounded from near-oversold levels, climbing toward 43, while the MACD histogram is showing shorter red bars, signaling that the bearish momentum could be fading.
The market is also attempting to recover from a liquidity washout that cleared overleveraged positions. ETH’s price currently sits between the $3,200 and $3,400 range — an area that aligns with previously tested support zones. A clear move above $3,400 would mark the first sign of recovery strength, potentially opening the door toward $3,600 and $3,800 resistance levels.
CryptoQuant: ETH Has Entered the Accumulation Stage
A detailed analysis from CryptoQuant provides a broader view of Ethereum’s market structure, breaking down its 2025 price action into four distinct phases: Decline, Accumulation, Markup, and Distribution.
According to the report titled “3K ETH: The Drop Explained,” the recent selloff fits within Ethereum’s natural market rhythm observed in prior cycles. Analysts identified that the same anchored VWAPs (Volume-Weighted Average Prices) used during previous corrections have once again acted as critical support. These levels, derived from key historical events such as Ethereum’s first 2021 all-time high and the July 2020 candle, continue to define market structure.
During the Decline phase, ETH dropped sharply below multiple VWAPs — including those from the Trump election victory and the 2024 ATH — with sellers maintaining full control. The subsequent Accumulation phase, however, began once prices stabilized between $2,000 and $3,000, a range that historically attracted long-term buyers.
In the Markup phase, Ethereum broke above these resistance VWAPs, initiating a powerful rally that peaked in August 2025. But as the rally lost steam, the Distribution stage took hold, with the market consolidating near $3,800 before finally breaking down under pressure from declining volume and aggressive long liquidations.
Major Liquidations and VWAP Levels in Focus
The CryptoQuant report noted heavy liquidations during the latest correction, with data now showing about $577 million in Ethereum positions wiped out over the past 24 hours — including roughly $484 million in longs and $93 million in shorts, marking one of the largest liquidation events of the quarter.
Ethereum is now supported by several historically important VWAP anchors: those tied to the 2021 and 2024 all-time highs, as well as from the Trump election rally. Analysts consider these levels to be strong technical foundations that have repeatedly acted as turning points during the past two years.
A break below $3,100 would likely expose ETH to deeper downside toward the $2,900 or even $2,500 region, while holding above $3,200 could reestablish short-term bullish confidence and set up a retest of the $3,600–$3,800 resistance zone.
Analysts See a Familiar Pattern
The current structure resembles Ethereum’s earlier consolidation cycles seen in 2022 and 2023, when periods of weakness led to extended accumulation before strong rallies followed. If history repeats, this correction could ultimately serve as the groundwork for another major leg higher once market sentiment stabilizes.
Michaël van de Poppe’s view aligns with this outlook. He sees the current dip as part of a “deeper but healthy correction,” suggesting that this could be one of the last opportunities for strategic accumulation before Ethereum’s next trend cycle begins.
Little deeper than expected on $ETH, but this is still the level that I think is wise to look for potential accumulations on #Ethereum. pic.twitter.com/a4Md3YzwYJ
— Michaël van de Poppe (@CryptoMichNL) November 5, 2025
Conclusion
Ethereum’s recent decline may have shaken short-term traders, but the technical backdrop implies the market could be entering a reset phase rather than a full-fledged reversal. With selling pressure subsiding, historical VWAP supports holding, and analysts flagging accumulation interest, the $3,000–$3,300 region is emerging as a potential battleground for the next major move.
Sustained buying interest at these levels could signal the start of a new accumulation cycle — a setup that many long-term Ethereum observers have seen before and are now watching closely once again.