Ethereum News Today: Ethereum Faces $3,500 Turning Point: Institutional Optimism Meets Bearish Market Pressure

Ethereum (ETH) is at a pivotal point as its price battles to stay above $3,500, with experts cautioning that a broader downturn led by

(BTC) could push prices even lower. Recent figures reveal conflicting trends for , as institutional buying and ETF inflows lend some stability, but ongoing bearish trends and liquidity concerns are dampening short-term optimism.

ETH has hovered around $3,800 lately, and technical analysis points to possible support near $3,470 if the price drops further, according to

. Blockchain data, however, indicates that major holders are still accumulating, with over 210,000 ETH added between October 27 and November 1. This is in contrast to declining interest from U.S. investors, shown by negative premiums on Coinbase’s ETH and net outflows from spot ETFs.

Institutional interest in

remains strong: in ETH reserves and on the network demonstrate ongoing faith in Ethereum’s long-term value. In Q3 2025, spot ETH ETFs drew in $9.6 billion, surpassing Bitcoin’s $8.7 billion, which points to increasing institutional engagement, as reported by . also highlighted BlackRock’s recent acquisition of 17,238 ETH for its ETF, further reinforcing Ethereum’s status as a reserve asset.

Nevertheless, Ethereum faces significant obstacles. The coin failed to break through resistance at $4,100 and $4,270, with over $121 million in liquidations occurring in the last day. Bernstein analysts point out that ETH’s price is linked to the assets secured on its blockchain, but warn that a drop in retail interest could alter market conditions. Both the Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) remain negative, suggesting continued downward momentum.

Bitcoin’s recent movement could worsen Ethereum’s challenges. BTC’s retreat to $112,400—a 2.2% fall from its October peak—has raised concerns about a possible market correction, according to

. While some see this as a routine mid-cycle dip, others caution that low liquidity and concentrated liquidations could heighten short-term volatility. Should Bitcoin revisit $111,000, Ethereum may follow, making $3,500 a crucial psychological threshold.

The wider crypto landscape is also evolving.

(SOL) has seen $199 million in ETF inflows over four straight days, pulling capital away from both Bitcoin and Ethereum, as noted by . This trend of “capital rotation” shows rising interest in staking rewards and emerging narratives, especially as Solana’s institutional collaborations grow. Still, Ethereum’s leadership in tokenization—which Standard Chartered estimates could hit $2 trillion by 2028—remains a major distinguishing factor.

Investors are paying close attention to the Federal Reserve’s policy direction, as a hawkish tone at the October meeting has reduced risk appetite. Bitcoin ETF inflows have slowed, and Ethereum’s outflows point to weaker participation from both retail and institutional players. According to CryptoQuant analysts, the current environment is characterized by “profit-taking and cautious positioning” rather than renewed accumulation.

In conclusion, Ethereum’s ability to hold the $3,500 mark depends on Bitcoin’s performance and the overall market mood. While institutional backing and ETF inflows provide some support, bearish technical signals and competition from other chains present significant challenges. Observers should keep an eye on key resistance points and on-chain liquidity as the market navigates a possible correction.