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The Ethereum price plunged 5% in the last 24 hours to trade at $3,315 as of 2:26 a.m. EST on trading volume that rose 46% to $71 billion.
That ETH price drop comes as 10x Research recommended shorting Ether as a potential hedge against Bitcoin.
According to the firm, there are structural risks within the Ethereum network. The research firm also noted a decline in institutional demand as key factors influencing strategy. This comes at a time when Bitcoin continues to attract treasury capital, and Ethereum-focused companies are on the verge of running out of capital to invest in the asset.
According to 10X Research, that makes ETH a potential shorting opportunity for investors looking to hedge their exposure to the digital asset sector.
LATEST: ⚡ 10x Research has identified Ethereum as a potential shorting opportunity, highlighting structural weaknesses as Bitcoin continues to capture the majority of institutional treasury capital. pic.twitter.com/s79Jgc0fy8
— CoinMarketCap (@CoinMarketCap) November 5, 2025
The analysts said that “digital asset treasury” narratives around Ethereum have led institutions to accumulate ETH and later distribute it to retail investors, a pattern now breaking down amid a lack of transparency in private investment in public equity (PIPE) disclosures and uncertain capital flows.
10x Research then referred to BitMine, noting that the firm’s strategy has allowed for institutional investors to accumulate ETH at par and later distribute it to retail buyers at a premium, a feedback loop that continued to drive prices higher.
Ethereum Price Tests Key Support After Rounded Top Breakdown
The ETH price has recently entered a bearish phase following a strong rally earlier in 2025.
After reaching a local high near $4,915, the Ethereum price formed a rounded top pattern, which indicates a shift in momentum from bullish to bearish.
The price of ETH has since declined sharply, breaking below both the $4,400 and $3,800 levels, and is now testing the $3,200–$3,300 support zone.
That zone aligns with the 0.618 Fibonacci retracement level ($3,221) from the previous rally, which is a crucial point where buyers often attempt to regain control.
The 1-day chart also shows that ETH has fallen below its 50-day Simple Moving Average (SMA) at $4,094, while currently sitting near the 200-day SMA at $3,378, an important long-term trend indicator. If bulls manage to defend this support and push prices back above $3,500, it could confirm a potential rebound and prevent a deeper correction.
The Relative Strength Index (RSI) currently stands around 30.86, near the oversold region, which shows that bears have control of the price.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator continues to support the bearish momentum, with the blue MACD line well below the orange signal line.
ETH Price Outlook: Bears In Control, But Bounce Possible
From a technical perspective, the trend remains bearish as long as the ETH price trades below both the 50-day and 200-day SMAs. The immediate resistance lies around $3,545 (the 0.5 Fibonacci level), followed by $3,868.
A daily close above those levels could mark the start of a short-term recovery toward $4,000–$4,200.
Conversely, if the $3,200 support level fails to hold, the next downside target lies near $2,780–$2,800.
Overall, Ethereum’s chart structure indicates a market at a critical juncture, with bears in control, yet technical indicators hint at an upcoming oversold relief bounce.
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