Ethereum prices slumped in November due to another round of selling. After a tough October with losses of around 17%, the price has fallen 3.8% in the past 24 hours to nearly $3,738. The market was expecting a rebound, but data now shows holders are reducing their exposure.
Still, on-chain support zones and significant momentum signals suggest the decline may not last long.
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Holders withdraw, but on-chain support remains strong
The holder accumulation rate, which measures how much existing Ethereum wallets are adding to their balances, fell to 29.79%, the second lowest level this month. The last similar decline was on October 9th (29.66%), causing a 14% decline from $4,370 to $3,750.
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This decline suggests that long-term holders are reducing their exposure or waiting for a better price. The death cross predicted last week (when Ethereum’s short-term moving average fell below its long-term moving average) has also materialized, confirming that sellers have temporarily gained the upper hand.
However, data from the cost-based distribution heatmap shows a strong support cluster between $3,649 and $3,686, where approximately 1.09 million ETH last traded.
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The cost-based heatmap displays the price level at which investors last purchased the coin. It helps identify major support or resistance zones based on past holder activity.
Such dense accumulations often act as a cushion, meaning that if Ethereum prices fall further, this region could spark bullish buying interest and limit deeper losses.
Bullish Divergence and Ethereum Price Trends Suggest a Possible Rebound
On the daily chart, Ethereum is trading within an ascending triangle, with the price continuing to make new lows along the upward-sloping support line. This structure typically reflects buyers’ resilience during pullbacks. Fibonacci levels mark the major resistance and support zones within this triangle.
From October 30 to November 3, ETH price formed higher lows, while the relative strength index (RSI), which measures the balance of buy and sell strength on a scale of 0 to 100, formed lower lows. This pattern is a hidden bullish divergence, suggesting that the underlying momentum remains positive despite the price decline.
If Ethereum price sustains above the $3,679 support zone, a rebound towards $3,899 (0.382 Fibonacci) could begin. Strength above $4,035 and $4,132 would support a recovery and invalidate any short-term bearish bias. Note that this major support zone has been previously validated by cost-based heatmaps.
However, if the daily price closes below $3,679, it will break the uptrend line and pave the way for a deeper correction. If that happens, ETH price could rise to $3,512, potentially even invalidating the prospect of a rebound.
