As of November 2025, the cryptocurrency market has experienced significant volatility, with Ether (ETH) witnessing a sharp decline to $3,055, marking a pivotal moment for traders and investors alike. This recent price movement has not only affected immediate trading strategies but also set the stage for potential future fluctuations in the market.
Understanding Ether’s Recent Price Dynamics
Earlier this week, Ether’s price plummeted by over 13%, a drop that extended its weekly decline and pushed the price to clear liquidity near the $3,400 level, a previously heavy leverage accumulation zone. This significant move has shifted the market’s focus to the next major liquidity pockets, which are currently positioned between $3,000 and $2,800. These levels have historically served as long-term structural supports and could play a crucial role in Ether’s market behavior in the coming weeks.
During this correction phase, Binance reported over $39 million in long position liquidations, the largest since early October 2025. Across the broader market, total long liquidations have exceeded $1.3 billion, leading to a reset in the derivatives landscape and a notable imbalance between long and short positions.
Market Stages Review for Ether in 2025
Throughout 2025, Ether has cycled through the four classical market stages: decline, accumulation, markup, and distribution. During its decline phase, Ether broke below several Anchored Volume-Weighted Average Price (AVWAP) levels, indicating a market controlled by sellers. This was followed by a 10-week accumulation phase, where prices ranged from $2,000 to $3,000.
Subsequently, during the markup stage, Ether rallied past these AVWAP levels, reaching a yearly high in August. However, the subsequent distribution phase saw buyers losing control, leading to a compression of prices between the AVWAPs from the all-time highs and $3,800, before breaking lower on high volume earlier this week.
Potential for a Short Squeeze
With over $7 billion in short position liquidity clustered around the $4,000 level, the current market conditions have primed Ether for a potential short squeeze. If the price momentum reverses near the $3,000 support, even a modest recovery could trigger significant liquidations of over-leveraged short positions, potentially accelerating a market rebound.
Adding to the bullish outlook, the daily chart for Ether shows a hidden bullish divergence between the price and the Relative Strength Index (RSI), where the price forms lower lows while the RSI holds equal lows. This often signals a trend reversal, suggesting that the current market downturn might be nearing its end.
Experienced crypto trader Daan Trades commented on the situation, noting, “ETH has fully rejected from that previous cycle high and is now back in the $2.8K–$4.1K range. There’s a good chance this chops around before another volatility spike.”
As the market continues to evolve, the potential for a short squeeze and a subsequent price recovery for Ether remains a significant point of discussion among traders and analysts. Monitoring these developments will be crucial for anyone engaged in the cryptocurrency markets, especially as we approach the end of 2025.
With the crypto landscape continually changing, staying informed and prepared for various market scenarios is more important than ever. As Ether tests long-term AVWAP supports again, the market may be signaling that the correction phase is nearing exhaustion, setting the stage for the next major price movement.
Disclaimer: This post is a compilation of publicly available information. MEXC does not verify or guarantee the accuracy of third-party content. Readers should conduct their own research before making any investment or participation decisions.
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