Ethereum Daily Chart Flashes Falling Wedge: Can ETH Reclaim $2,350?

Ethereum is trading near $2,297, up 1.93% on the day. ETH bounced from a low of $2,226.44 and touched $2,306.43 during the session.

The move comes after reports that Democrats won the US Senate and the House. Many crypto traders see that as a less friendly result than Republican control.

Nothing is final yet. Still, politics can shift the mood fast, and crypto often reacts first.

Senate Shock: Why Crypto Traders Are on Edge

Democrats flipped states that Donald Trump won by double digits in 2024. Texas and Kansas elected Democrats to the Senate for the first time in decades.

Republican leaders and the Trump administration had pushed for stablecoin rules and self-custody protections. Traders now wonder if that push is slowing down.

ETF Outflows Hit $85.35M: Are Big Buyers Stepping Back?

The US Ethereum spot ETF market recorded a net outflow of $85.35 million on November 3, as per SoSoValue.

BlackRock's ETHA led the exits with $74.44 million out. Grayscale's ETH followed with $10.91 million. Other funds showed no flows.

The bigger picture still looks solid. Cumulative net inflows stand at $12.06 billion. Total net assets are $13.32 billion, or 4.76% of ETH's market cap.

Daily trading value reached $352.94 million. For now, the selling looks short-term.

Derivatives Lean Slightly Bullish, but Longs Took the Bigger Hit

Futures volume rose 24.26% to $36.18B. Open interest gained 2.84% to $28.52B. That points to fresh positioning.

The overall long/short ratio is 1.008, so the market is almost even. Binance ETH/USDT accounts lean long at 2.4674, and OKX shows 2.01.

Top traders on Binance sit at 2.1133 by accounts and 1.669 by positions.

Liquidations tell a mixed story. In the last hour, shorts lost $4.73M against $388.38K for longs. Over 24 hours, though, longs lost $35.56M and shorts lost $31.95M.

Bulls have a mild edge, not a clear win.

Falling Wedge Hints at a Possible Reversal on the Daily Chart

On the 1-day chart, ETH/USDT is forming a falling wedge. This pattern can signal a bullish turn if price breaks the upper trendline.

The trend is still weak, though. The altcoin trades below the 20, 50, 100, and 200 EMAs. RSI is near 40, which shows soft momentum but is close to oversold.

Analyst Ali Charts pointed out that Ethereum fell 22.64%, from $2,806 to a low of $2,171. The TD Sequential then flashed a buy signal on the 3-day chart.

He sees a rebound to $2,500 as possible. Above that, the $2,700 resistance trendline comes into focus.

Key ETH Levels Traders Are Watching

What Could Happen Next for ETH?

If support at $2,220 to $2,250 holds, ETH could try a move to $2,350. After that, $2,405 to $2,450 is the next test.

A strong daily close above the wedge, backed by rising volume, could open the path to $2,500 to $2,600.

If ETH drops below $2,220, the bearish trend may continue toward $2,150 and $2,100.

Overall, Ethereum shows some reversal potential. But a wedge is only a setup until price breaks out. ETF flows and the political news could decide the next move.

Disclaimer

This article is for information only and is not financial advice. Cryptocurrency trading carries a high risk, and prices can move fast. You can lose some or all of your money. Do your own research and speak to a licensed financial advisor before making any investment decision.