Ethereum ($ETH) flashes buy signs, soaring 7% to $2,460 in early morning trading amid mounting speculation over a ‘massive bear trap’ unfolding across crypto markets. Analysts express surprise as on-chain data signals a potential reversal, leaving traders questioning whether recent bearish momentum could abruptly snap.
Ethereum Jumps 7%: On-Chain Flows Suggest Short Squeeze Risk
Ethereum’s price rebounds sharply, climbing from $2,298 to $2,460 over the past 24 hours as total spot volume on major exchanges surpasses $23.5 billion, according to CoinMarketCap data as of November 7, 2025. This move is underpinned by an 11% spike in liquidations of short positions, per Coinglass, as over $110 million in ETH shorts are forced to close in a single trading session. Data from CryptoQuant further reveals that exchange reserves for ETH hit a three-month low, suggesting sustained accumulation by large holders. Ethereum’s market capitalization stands at $296 billion, up 8.5% week-over-week, pushing it closer to retesting key resistance last seen in early August 2025.
Crypto Market Volatility Rises as Bearish Momentum Weakens
Broader crypto market volatility is intensifying, with the Crypto Fear & Greed Index rebounding from 32 (Fear) to 49 (Neutral) in just two days, according to Alternative.me. Bitcoin ($BTC), the sector’s bellwether, gains 5.3% concurrently, lifting the overall digital asset market cap by $56 billion in one day. These moves come after a month-long downtrend driven by concerns over US regulatory headwinds and renewed speculation about Federal Reserve rate policy. However, the sharp reversal in Ether and other major altcoins suggests growing skepticism around ongoing bearish narratives—especially as centralized exchange outflows increase by 13% week-over-week based on Glassnode analytics. Historical data from 2022 and 2023 signal that such ‘bear trap’ setups have often preceded medium-term rallies in the sector. For more in-depth context, see cryptocurrency market trends on ThinkInvest.
Strategic Plays: How Investors Are Responding to Ethereum’s Rebound
Active traders are recalibrating strategies as Ethereum’s surging price triggers new technical buy signals, notably a bullish divergence on the daily relative strength index (RSI), now at 64 and rising. Algorithmic and quant funds, as tracked by Dune Analytics, have amplified long exposure to ETH perpetuals, with open interest up $800 million week-on-week. At the same time, options markets reflect increased call buying, with the ETH put/call ratio falling to 0.71, the lowest since June 2023. For investors with diversified portfolios or a long-term horizon, analysts recommend monitoring key risk factors—including potential regulatory developments and macroeconomic shocks. For updated insights, explore additional latest financial news and broader investment strategy approaches on ThinkInvest.org.
Analysts Split on Ethereum Outlook as Technicals Flash Reversal
Market strategists remain divided on Ether’s next moves. According to analysts at CryptoCompare, sustained accumulation by large addresses and decreasing exchange balances point toward upward momentum, while others warn of possible volatility due to uncertain US crypto policy. Industry analysts at Bloomberg and Kaiko observe that historical bear traps in Ethereum have often triggered multi-week rallies, but note ongoing risks tied to macroeconomic conditions and network development milestones.
Ethereum Flashes Buy Signs as Investors Eye November Catalysts
The spike in Ethereum flashes buy signs for a broadening investor base, with attention now fixed on US inflation prints and possible SEC ETF decisions later in November. Those watching the ‘massive bear trap’ narrative will monitor whether ETH sustains its rebound above $2,450—a level critical for signaling possible continuation. Investors should be alert for new data confirming either a true reversal or renewed volatility, as these Ethereum flashes buy signs could shape sentiment heading into year-end.
Tags: Ethereum, ETH, crypto market, bear trap, cryptocurrency
