The post Why is the Ethereum Price Up Today? Is It the End of a Bear Trap or Just a Dead-Cat Bounce? appeared first on Coinpedia Fintech News

Ethereum (ETH) price recorded a relief rally on Friday, November 7. The large-cap altcoin gained over 4% during the past 24 hours to retest a resistance/support level of around $3,468 during the mid-North American trading session.

Notably, the ETH/USD pair retested a supply wall established during the last two days. As such, the ETH price may be rejected again and trigger further capitulation.

Source: CoinMarketCap

Main Reasons Why Ethereum Price is Up Today

Rising Demand from Institutional Investors

The mild ETH price rebound was fueled by institutional demand. On Friday, on-chain data analysis revealed that Cathie Wood’s ARK ($40.56) Invest bought an additional 240K shares of BitMine Immersion in the past 24 hours.

Additionally, JPMorgan purchased 1,974,144 shares of BitMine, valued at about $102 million. As such, BitMine currently holds 3,395,422 ETH, worth more than $11 billion.

Heavy liquidation of short traders

Following the sudden ETH and wider crypto pump, heavy liquidation of short traders was recorded. According to market data from CoinGlass, more than $621 million was liquidated from leveraged crypto traders in the past 24 hours, with around $370 million involving short traders.

Heavy liquidation of short traders resulted in a long squeeze.

What’s Next For ETH Price?

Bearish thesis

From a technical analysis standpoint, the Eth price has been trapped in a mid-term correction. Popular crypto analyst @devchart noted that the ETH price will shift to bullish momentum if it consistently closes above $3,446.

Source: X

Otherwise, the crypto analyst believes that the ETH price is gradually forming a lower high in preparation for another selloff. 

Macro outlook

In the long term, the ETH/USD pair is on the cusp of a parabolic rally towards price discovery. 

The macro bullish outlook for ETH is bolstered by the highly anticipated Fed’s Quantitative Easing (QE) set to begin on December 1, 2025.