Is Ethereum Primed for a Major Rebound?

While November has been a challenging period for Ethereum investors, recent market activity suggests a potential shift in momentum. As the cryptocurrency shows tentative signs of recovery after weeks of decline, significant movements are occurring behind the scenes. Major institutional players are accumulating substantial positions, seemingly betting against prevailing market pessimism. This raises a compelling question: could the world's second-largest cryptocurrency be positioning for a powerful short squeeze that would pressure bearish traders?

As smaller investors remain cautious amid price volatility, sophisticated market participants appear to be taking advantage of the situation. On-chain analytics reveal a clear divergence between price action and the behavior of major holders, often referred to as "smart money."

Key developments include:
* Substantial Purchases: BitMine capitalized on lower price levels by acquiring approximately 28,625 ETH, representing an investment of roughly $82 million.
* ETF Momentum Shift: U.S. spot Ethereum ETFs, particularly those managed by BlackRock, have reversed their previous outflow trend and are now experiencing notable inflows after multiple days of withdrawals.

This pattern of institutional accumulation typically indicates that professional investors consider current price levels substantially undervalued and are establishing positions ahead of a potential year-end recovery.

Technical Setup Points to Potential Volatility

Market technicians are observing a potentially explosive situation developing. Traders are closely monitoring the psychologically significant $3,000 threshold, with derivative market data revealing substantial risk concentration at this level. A decisive break above this resistance point could trigger forced liquidations of short positions totaling nearly $800 million.

Should investors sell immediately? Or is it worth buying Ethereum?

Such a short squeeze event would dramatically amplify upward price pressure. Ethereum currently trades around $2,967, showing signs of establishing a foundation after declining almost 29% over the past month. Recent price action indicates that selling pressure may be exhausting itself, with support around $2,750 demonstrating resilience.

Network Fundamentals Reach New Heights

Completely detached from price chart movements, Ethereum's underlying network health continues to demonstrate remarkable strength. The network has achieved a new all-time high in transactions per second (TPS), exceeding 364 transactions per second. This performance surge is largely driven by the rapid expansion of Layer-2 scaling solutions including Base and Arbitrum.

Meanwhile, co-founder Vitalik Buterin continues to shape the blockchain's strategic direction. Responding to recent data breaches affecting major banking institutions, he reiterated that "privacy isn't a feature, it's hygiene." His advocacy for enhanced protective mechanisms within the Web3 ecosystem addresses growing contemporary concerns and could foster greater long-term confidence in the platform.

The convergence of robust technical indicators, institutional buying pressure, and record-setting network utilization makes Ethereum's current valuation appear increasingly disconnected from its fundamental strength.