Ethereum Traders Buy the Dip Despite Third-Largest Spot Outflow Since October

Ethereum is showing bullish signs as traders are actively buying on dips following significant spot outflows. On November 3, Ethereum experienced a net outflow of $359 million, marking the third-largest single-day outflow since October. This trend indicates that more Ether is being removed from exchanges for long-term holding rather than being traded, which often signals investor confidence. Historical data suggests that similar outflows previously led to price increases of 7% to 13%. Experts believe that while the current signal is optimistic, it hinges on broader market conditions and new demand emerging. Furthermore, a temporary pause in the U.S.-China trade tensions might create a more favorable environment for risk assets like Ethereum. Despite this downtrend, Ethereum's performance remains under pressure, currently trading at $3,498 with a notable decline over the past weeks. Overall, the market is keenly observing these developments as they could set the stage for potential price rebounds.

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