Ethereum has staged a notable recovery, returning toward the $3,400 level after one of its most challenging stretches since autumn.
The move coincides with Bitcoin reclaiming $90,000, but analysts argue Ethereum’s rebound carries its own narrative rather than simply reflecting broader market strength.
Key Takeaways
Ethereum’s rebound near $3,400 has prompted analysts to reassess its trajectory.
Multiple technical indicators point to improving structure and the potential for trend continuation.
Analysts view November’s downturn as more of a reset than a trend failure.
After weeks of hesitation and heavy selling pressure, sentiment around the asset appears to be improving.
Analysts Say the Market May Have Reset
Glassnode co-founder Negentropic was among the first to flag changes in Ethereum’s structure. He noted that the asset has reclaimed its 50-day moving average — a level many technical traders watch carefully when assessing the difference between a temporary bounce and a trend shift.
According to him, dominance metrics are firming, momentum indicators have turned positive, and the technical profile is beginning to resemble past periods that preceded meaningful rallies. He described the current setup as one where Ethereum is preparing “quietly rather than theatrically,” hinting that the asset may be entering a phase where accumulation leads price action rather than speculation.
Long-Term Pattern Seen as Constructive
Independent analyst Merlijn The Trader echoed that assessment, looking further out into multi-month price behavior. On Ethereum’s weekly chart, he sees a broad inverse head-and-shoulders structure forming — a configuration associated with bullish reversals when fully confirmed. While traders often treat such formations cautiously until they break neckline resistance, the fact that it is taking shape after a sustained decline has attracted attention. In his view, Ethereum is displaying one of the strongest long-term formations among major assets.
Analyst Rekt Capital took a different tack, focusing on where Ethereum is trading relative to historically supportive regions. He highlighted that Ethereum continues to operate inside a demand zone that has repeatedly attracted buying interest. For him, the key test will be whether Ethereum can secure a weekly close above the CME futures gap. Achieving that, he argues, may open the door toward further upside into late December, particularly if Bitcoin’s recovery stabilizes investor sentiment.
Traders Look Ahead to December Dynamics
With momentum returning and technical frameworks strengthening, the tone among analysts has shifted from emergency-driven caution to guarded optimism. Market watchers still note risks, including seasonal volatility and macro-driven uncertainty, but the prevailing view is that Ethereum’s November correction may have acted as a reset rather than a breakdown.
Investors will now be monitoring whether capital can rotate back into altcoins and whether early signs of a trend shift can mature into more sustained movement into year-end. If analysts are correct, Ethereum may be entering a chapter where durability matters more than speculative spikes — positioning it as a leading indicator for sentiment heading into December.
